Australia's 'balance' in focus as Albanese to meet China's Xi

SYDNEY - Australia's Prime Minister Anthony Albanese will meet China's President Xi Jinping in Brazil on Monday, as Beijing seeks to promote Australia as a model for trading with China in a Trump era, even as Canberra draws closer defence ties with Washington.

The meeting with Xi, which Australian officials said would take place on the sidelines of the G20 summit in Rio de Janeiro, comes a year after Albanese travelled to Beijing to end a years-long diplomatic dispute that saw billions of dollars worth of Australian exports to its largest trading partner blocked.

The pledge by the incoming administration of President-elect Donald Trump to impose hefty tariffs on China appears in contrast to Australia's policy of stabilising ties and exporting iron ore, gas and agricultural produce to China's complementary economy, analysts said.

Albanese said on Sunday he would not get involved in bilateral relations between Beijing and Washington, when asked by reporters about Trump's pledge of China tariffs.

Albanese told reporters Australia had not changed its position on any of the differences it has with Beijing, and exports to China created jobs in Australia.

The U.S. Ambassador to Australia, Caroline Kennedy, said in a speech on Monday that Australia was "hand's down our most glorious friend".

She highlighted increased defence cooperation between Washington and Canberra, and plans to develop Australia's critical minerals sector to break China's "chokehold".

"Australian policy with Washington in the Trump era looks increasingly like it is going to be running on two tracks – with deepening and intensifying ties in security, with a more discordant and combative relationship on trade," said Lowy Institute senior fellow for East Asia, Richard McGregor.

In an editorial last week, the state-owned China Daily newspaper said Australia was a model for U.S. allies in a Trump era, because it had shaken off Washington's "anti-China spell" to balance trade with China.

"It is true that Canberra's position on trade with China is vastly different to Washington's and this difference will only be magnified by the arrival of the Trump administration," said James Laurenceson, Director of the Australia-China Relations Institute at the University of Technology Sydney.

There was no prospect of Australia joining the U.S. in imposing tariffs on Chinese electric vehicles, for example, and Canberra and Beijing were strong supporters of the World Trade Organization to resolve trade disputes, he said. REUTERS