Canberra

Australia Prime Miniter Anthony Albanese said on Sunday (Oct 22) that he will visit China from November 4 to 7 and will meet Chinese President Xi Jinping and Premier Li Qiang. The visit is being looked at as an attempt by both nations to stabilise the strained relations. China is Australia's biggest trading partner.

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The announcement of the trip followed a breakthrough on Saturday in a dispute between two countries over China's wine tariffs that have hurt Australia's sprawling wine-making industry. Albanese's visit would be a first by an Australian leader to China since 2016.

"It is important that we stabilise our relationship with China," Albanese said.

In a statement, he said that he will discuss co-operation in economic ties, climate change and "links between our people"

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"I look forward to further engaging with President Xi and Premier Li in Australia's national interest," he said.

The wine dispute

Albanese announced late on Saturday that Australia had reached a deal with China to solve its World Trade Organization (WTO) dispute over wine. The deal may potentially clear way for resumption of export of Australian wine to China.

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China imposed duties on Australian wine in 2021. In the year before that, exports of Australian wine to China amounted to USD 800 million.

"We have agreed on the issue of wine for there to be a review of China's position on wine tariffs to be conducted over the next months," Albanese told reporters.

"We will suspend our action before the WTO, but we're very confident that this will result in once again Australian wine, a great product, being able to go to China free of the tariffs."

On Sunday, China's commerce ministry said that a consensus was reached with Australia in order to settle the WTO wine dispute and also that over Australian duties on Chinese wind towers.

"China and Australia are important trading partners of each other, and we are willing to work with the Australian side to continue to meet each other halfway through dialogue and consultation," China's Commerce ministry said in a statement.

It added that both countries held "friendly consultations" on WTO disputes of mutual concern and were willing to "jointly promote the stable and healthy development of bilateral economic and trade relations."

Relations between China and Australia have been strained over past year after China made assertive political moves with Pacific Island nations. The region is traditionally seen to be part of Australia's sphere of influence. Australia is also part of the Aukus pact that includes the US and the UK. The pact is seen by China as a move to contain it.

(With inputs from agencies)

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