Great potential seen in Beijing, Canberra ties

Australia can work together with China toward a bright economic future, by building on their strong trade ties, especially in the pillar resources sector, said David Michael, Western Australia's minister for mines and petroleum.

Speaking with China Daily, Michael expressed confidence in China's high-quality development and innovation, highlighting the strong complementarity and win-win potential of China-Australia economic cooperation.

"From the projections I've seen, China obviously has a very bright future in terms of its growth … with Western Australia, we can both work together for the benefit of both our state and this country of China," Michael said.

Western Australia is among the world's largest iron ore suppliers and China is its main consumer — the Australian state supplied a total of 920 million metric tons of iron ore last year, with exports to China making up more than 84 percent, according to the minister.

Iron ore exports remain Australia's biggest earner and they are set to account for more than one quarter of all resource and energy commodities over the next two years, with earnings from exports forecast to hit A$105 billion ($68.7 billion) in 2025-26 alone, according to the Australian Department of Industry, Science, and Resources.

While forecasts also saw a reduction in Australia's earnings from commodities that reflected the impact of rising trade barriers and other economic headwinds, Michael pointed to the resilience of Australia-China ties and the depth of experience and expertise in industry.

"We know that Western Australia and China have an amazing relationship for trade for many decades now," he said.

"Western Australia is obviously very good at big, difficult projects in terms of our mining sector and oil and gas sector. And that's something we want to continue because we know that with the demand in China for some of our products, it is a win-win, mutual benefit, for both of us."

The minister also highlighted the potential and promise of the global green transition to a net-zero emissions economy, opening up new opportunities for the traditional sectors.

"We know that commodities are on a price cycle and the mining industry's dealt with that for a very long time," he said.

Energy transformation

"But I know that the world will continue to need a lot of steel and also with the energy transformation around the world to net zero, it will continue to need a lot of those critical minerals."

Western Australia stands ready to continue working with China as it leads the shift to a high-technology, innovation-driven growth model, Michael said.

"We know China is doing some amazing work in technology around batteries and renewable energy, at the moment, that it shares with the entire world, including Western Australia," he said, with the state also investing in green iron — processed using sustainable methods that minimize carbon dioxide emissions — "to help the steel mills of China hopefully produce greener steel in the future".

Western Australia prides itself in having a good relationship with China that allows dialogue, collaboration and cooperation between both sides "and it's something we'll continue to do", Michael said.

"There's always collaboration on new technologies, new ways of doing things, cleaner ways of doing things. We know that China is at the forefront of some of those areas. We also know Western Australians are really smart and we are at the forefront as well," he said.

"Cooperating together with some of our friends around the world, we'll have, hopefully, a much cleaner, greener future in the coming years."

xinxin@chinadaily.com.cn

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