MA XUEJING/CHINA DAILY

Global Times-Australian Treasurer Jim Chalmers said on Sunday that the re-elected Labor government's first priority will be to address global economic uncertainty. Protecting Australia from the "dark shadow" of a US-China trade war will be the first priority for Australia's re-elected Labor government, Chalmers was quoted by the South China Morning Post as saying.

The remarks not only highlight the profound uncertainties created by the US-provoked tariff war, but also the great desire of countries and regions around the world to focus on economic development. Also importantly, the stated priority of the newly-elected Australian government could mean greater win-win cooperation with China. 

The Australian economy is grappling with a range of complex challenges. How the Labor government will navigate these domestic economic and international trade pressures, particularly in managing budget deficits and revitalizing trade competitiveness, has become a focal point of attention.

Closer economic engagement with China could be of great importance for Australia to effectively address these multifaceted challenges, as such cooperation could pave the way for a more stable economic environment, ultimately contributing to Australia's long-term economic resilience and growth.

With joint efforts from both sides, China-Australia relations are stabilizing and improving, particularly in terms of trade relations, underscoring the complementarity of economic cooperation between the two countries. China has been Australia's largest trading partner for many consecutive years. This colossal economic engagement has not only brought substantial financial gains to Australia but also underpinned the development of several of its key industries.

China's sustained demand for Australian iron ore is vital for Australia's mining sector, while Chinese consumers' appetite for Australian beef, wine and agricultural products has created a steady and sustainable source of income for Australia's ranchers, wineries and farmers. These economic benefits are factors that any rational economic policymaking cannot overlook.

However, it is important to note that Australia's China policy has long been shaped by a complex interplay of geopolitical factors, which has in the past resulted in alignment with the US-led "decoupling" efforts. Instead of leading to any gains, following the US' "decoupling" approach actually exposes Australia to greater economic vulnerability. This situation is especially true as the US continues to erect trade barriers. 

The Australian government has been working to secure a tariff exemption from the US government, with no results yet. The IMF said recently that uncertainty had reached unprecedented levels and downgraded Australia's economic growth projection for 2025 from 2.1 percent in January to 1.6 percent.

To effectively respond to these pressing challenges and deal with global economic uncertainty, Australia must balance the need for economic interests and geopolitical considerations in a more pragmatic approach. This necessitates that Australian policymaker handle economic and trade relations with China in a more rational manner. 

History has shown that when Australia formulates an independent and autonomous China policy, bilateral relations tend to make substantial progress, and the potential for economic and trade cooperation can be fully unleashed.

China is further deepening reform comprehensively to advance Chinese modernization, while Australia is promoting a Future Made in Australia. This creates broader opportunities and opens up greater space for China-Australia economic and trade cooperation. Strengthening economic and trade exchanges between the two countries can transform complementary advantages into strong momentum for their joint development. 

As key players in the Asia-Pacific region, China-Australia cooperation can bolster regional prosperity and stability, while offering new solutions to global challenges. At a time of significant challenges facing the global trade network, Australia and China can jointly uphold the multilateral trading system to offset the impact of volatility.

The path forward requires recognizing that balanced economic relations with China serve Australia's fundamental interests. This choice will test Australia's strategic foresight. It is hoped that the Australian government can adhere to a pragmatic China policy that focuses on mutually beneficial cooperation.