Source : the age
Beijing: Chinese oil companies have the green light to resume negotiating exports of jet fuel to Australian businesses weeks after authorities stalled shipments due to the Iran war crisis.
Foreign Minister Penny Wong confirmed that China had agreed to take a “first step” to resume critical exports of jet fuel to Australian businesses after a three-hour meeting with Chinese Foreign Minister Wang Yi on Wednesday.
“I can confirm that the Chinese government is facilitating engagement with Australian businesses on jet fuel,” Wong said in a late-night press conference in Beijing.
Wong said a phone call earlier this month between Prime Minister Anthony Albanese and Chinese Premier Li Qiang had helped pave the way for the breakthrough.
She did not say which businesses or sectors were involved, or when jet fuel exports would ramp up, noting “those are commercial engagements, but we believe this is an important step”.
The Chinese government never officially announced a freeze on its jet fuel exports, but it heavily curtailed shipments at the outbreak of the Iran war to build up its own domestic supplies.
Australia sources 30 per cent of its jet fuel needs from China, with supplies becoming increasingly critical as the Iran-US chokehold over the strait continues into its ninth week without a clear pathway to resolution.
In an interview with this masthead earlier on Wednesday, Wong revealed she would make the case to Wang that China could only continue to receive reliable supplies of Australian iron ore and gas if it unlocked access to jet fuels and other fuels.
“We supply you with iron ore, we supply you with coal, we supply LNG, and we supply food, and we want to see a reliable supply of liquid fuels, including jet fuel,” she said, describing Australia’s pitch to China.
“We have a shared interest in this because those inputs are required for us to continue to be a reliable supplier.
“You can’t run a mining industry without jet fuel and diesel. You need to get your FIFO workers there.”
Her visit coincided with signals that Beijing was preparing to relax its shipment restrictions, with British newspaper The Financial Times reporting on Wednesday that China’s largest state oil companies have applied for export permits to ship fuel in May.
But Wong’s visit to Beijing on Wednesday got off to an awkward start after Chinese officials disrupted an earlier meeting between her and Chinese Vice President Han Zheng, when they attempted to usher Australian media out of the room before she had completed her opening remarks.
One Chinese official moved in front of the Australian government’s official cameraman, obstructing his efforts to film Wong’s prepared statement as she spoke of the global uncertainty and energy crisis caused by the Iran War.
Ignoring the efforts to move them on, Australian media remained in place until Wong finished speaking, where she stressed that the Middle East conflict and the closure of the Strait of Hormuz had hit Asian refineries and the Indo-Pacific Region disproportionately.
“In that context, it’s more important than ever that we continue to engage and find ways to work together to keep fuel and goods flowing,” Wong said in her opening remarks, addressing them Han who was seated across from her at a long table, flanked by Chinese officials.
Wong and Australian ambassador Scott Dewar, who was seated next to her, looked up in the direction of the Australian media pack as officials began insisting they leave, despite protests from the journalists that the foreign minister was still speaking.
Eventually, the Chinese officials used a rope to usher the media out of the room, with reporters voluntarily departing once Wong had finished her remarks, which took a few minutes.
Han, who addressed the meeting before Wong, did not mention the energy crisis in his opening remarks. Citing progress in the bilateral relationship, he said China was ready to “offer a more mature, steady and more fruitful China-Australia comprehensive strategic partnership.”
Wong’s trip to Beijing is part of a quick trip through East Asia this week, flanked by stops in Tokyo and Seoul to discuss fuel security. It builds on Albanese and Wong’s oil diplomacy tours this month to key Asian trading partners Singapore, Malaysia and Brunei.
Asia has borne the brunt of US President Donald Trump’s tariffs and now is among the worst-hit regions by the energy crisis.
Asked about the feedback she was hearing from Asian neighbours on how these issues were affecting the standing of Australia’s close security ally, Wong said there was a “shared understanding” that the US was repositioning its role in world affairs.
“I don’t think there’s any doubt that this President Trump envisages a different role for America and the world, and a different approach to the countries of the world,” Wong said.
Wong declined to engage directly on whether she was concerned that diminishing US credibility in Asia would translate to a rising reliance on China in Asia and strengthen Beijing’s global leadership aspirations, but she acknowledged “this is a time of great change”.
“You have a different US. You have a different China. We have to have the confidence in ourselves to navigate a different world, and we do that by building relationships in the region and beyond, which is what the government’s been doing,” she said.
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Lisa Visentin is the North Asia correspondent for The Sydney Morning Herald and The Age based in Beijing. She was previously a federal political correspondent based in Canberra.Connect via X or email.
