Ahead of Chinese Premier Li Qiang's visit to Australia from Saturday, June 15 to Tuesday, June 18, the country was wondering about the future of two giant pandas, loaned to Adelaide Zoo in 2009. In all likelihood, Beijing would extend their stay, or even exchange them for another, more fertile pair. The return of panda diplomacy – China uses these creatures to facilitate rapprochements and improve its image abroad – testifies to the improvement of a relationship that had been particularly troubled between 2020 and 2022.

In November 2023, Chinese President Xi Jinping said that the two countries could become "trusted partners" as he received an Australian head of government, Anthony Albanese, for the first time in seven years. Seven months later, the visit of the People's Republic's number two to the island-continent, for the first time since 2017, "represents another important step in stabilizing our relationship with China (...) Our approach has been patient, calibrated and deliberate," Albanese stressed on Wednesday.

On a first stop in Adelaide, the two men were scheduled to visit the zoo before lunching at a winery with executives from the sector, which in 2020 was hit with anti-dumping duties of up to 218%, costing the industry 1.1 billion Australian dollars (nearly €700 million) a year. Beijing lifted the duties in March.

In total, a dozen of export products were targeted by customs barriers after Canberra called for an independent inquiry into the origin of the Covid-19 pandemic in April 2020. The decision caused China's fury, which was already annoyed by a series of measures taken by Australia as early as 2017 to defend its sovereignty and security.

Albanese, who became prime minister in 2022 and has remained firm on national security issues, has shown a willingness to engage in dialogue and reconciliation. In recent months, The People's Republic has taken up the offer and lifted most of its retaliatory measures. There remains the question of lobster, which is still excluded from the Chinese market, although this issue could be resolved following Li's visit.

"I think we're returning to the situation of 2019 when Australia and China had their political differences but they didn't let them affect the positive aspects of the relationship, such as trade," said James Laurenceson, director of the Australia-China Relations Institute.

During his trip, the prime minister will also travel to Canberra and Western Australia, where he will visit the lithium processing plant of the Chinese company Tianqi Lithium. Foreign investment in rare earth metals – considered an essential strategic resource and of which Australia is the world's second-largest producer – is governed by strict rules set by Canberra. "The Chinese would like to be treated like other foreign investors," added Laurenceson. "More generally, they're ready to move the relationship beyond a simple 'stabilization.'"

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