China Australia Photo: CFP

The reported visit by Australian Treasurer Jim Chalmers to China later this month signals a furthering of the high-level interactions between China and Australia under the guidance of head-of-state diplomacy and more concrete results with economic and trade issues in focus amid an overall improvement of bilateral relations after years of frayed ties, analysts said on Monday.

Chalmers will visit China in the final week of September in the first trip by an Australian treasurer in seven years. The treasurer terms the visit as a "strategic economic dialogue" that will include discussions about trade restrictions, foreign investment rules and so-called sensitive areas such as critical minerals, according to Bloomberg, which cited Australian Broadcasting Corp.

"This is all about recognizing that there's a lot at stake and a lot to gain from a relationship that is more stable, and stronger and more prosperous," Chalmers said.

As one more high-level meeting following Chinese Premier Li Qiang's fruitful visit to Australia in June, the visit shows that bilateral relations have been "further improving and stabilizing, and are even in the process of further warming up," according to Chinese observers.

"Amid the sluggish world economic recovery, both China and Australia are looking forward to further enhancing economic and trade relations, which will bring mutual benefits," Chen Hong, executive director at the Asia Pacific Studies Center of East China Normal University, told the Global Times on Monday.

"Relatively, the Australian side's expectations are greater and it is more eager. Faced with a less-than-ideal budget situation, slowing domestic economic growth and mounting inflation pressure, the Australian government hopes to alleviate its domestic economic problems by strengthening economic and trade relations with China, its largest trading partner," Chen said. 

Amid improving ties, China and Australia have resolved trade disputes over wine and barley. A surge of Australian wine exports has seen China return to the top export market by value, according to industry association Wine Australia.

Australian exporters of avocados and blueberries also stand to benefit from gaining access to China's huge market. Already, Australian apple farmers are hoping to gain access to the vast China market, according to media reports.  

Chinese analysts noted that there are some issues for the two sides to iron out, including Australia's tightening reviews and restrictions of Chinese investment in the country, and warned that the Australian government must deal with the so-called critical mineral issue very carefully.

In June, Chalmers ordered several China-linked investors to dispose of shares in a rare-earth miner on national interest grounds, according to Reuters.

"The move smells of political implications and reflects pandering to the US. Mineral exports are the cornerstone of the Australian economy and the Australian government needs to act with strategic caution on the issue and refrain from attempts to politicize the issue, as abusing restrictions on mineral ore trade will harm Australia's fundamental economic interests, incurring long-term and grave strategic losses," Chen said.