(Bloomberg) -- Jim Chalmers will visit China this month in the first trip by an Australian treasurer in seven years, as the two countries navigate geopolitical tensions and slowing growth in the world’s second-largest economy.
Chalmers will meet with senior officials in Beijing in the final week of September in what he described as a “strategic economic dialog” that will include discussions about trade restrictions, foreign investment rules and sensitive areas such as critical minerals, he said Sunday on ABC Television.
The treasurer said he will discuss “issues like the trade restrictions,” and “compare notes about how we’re seeing the global economy.” Australia’s foreign investment restrictions would also be discussed, given plans for reform.
“I want to strengthen it in areas like critical minerals, critical infrastructure, critical data, and I want to streamline it for areas where there are fewer concerns,” Chalmers said.
The last time an Australian treasurer made such a trip to China was in 2017 when Scott Morrison held the role. “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.
He also noted a drop in the prices of iron ore and metallurgical coal, two of Australia’s key commodities, which partly reflect a slowdown in demand from China. One scenario provided by Treasury indicates a A$4.5 billion ($3 billion) hit to Australia’s budget should those price declines continue, Chalmers said.
“This is a real sign of weakness in the global economy,” Chalmers said. “We’re not immune from it, our economy is not immune from it, and nor is our budget.”
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