Speaking in Sydney before his departure, Albanese said his government would not shy away from addressing contentious topics, including China’s military buildup in the South China Sea and the imprisonment of Chinese-Australian writer Yang Hengjun. “We cooperate where we can and we disagree where we must,” Albanese stated, reaffirming his diplomatic posture of frank dialogue with Beijing.

Foreign Minister Penny Wong also voiced concern about China’s growing nuclear and conventional arsenal, warning of efforts by Beijing to reshape the balance of power in the Indo-Pacific. Earlier this year, China conducted live-fire exercises in the Tasman Sea, raising alarms in Canberra.

Albanese’s visit includes stops in Shanghai, Beijing, and Chengdu and will feature trade and diplomatic engagements, including a CEO roundtable and China’s international supply chain expo.

Economic Ties And Diplomatic Balancing Act

With China accounting for a quarter of Australia’s total exports, from iron ore to wine, the economic stakes are high. However, the trip comes as President Donald Trump imposes sweeping new tariffs across Asia, further complicating the regional landscape.

A delegation of business leaders from companies like BHP Group, Rio Tinto, Fortescue, and Macquarie Bank are accompanying the prime minister to reinforce commercial relations.

Although Albanese was scheduled to meet Trump at the G7 summit in Canada, the meeting was canceled as Trump returned to Washington following Israel’s strike on Iran. The lack of a bilateral meeting further places pressure on Albanese to assert Australia's interests independently.

“We have a range of cultural exchanges which can be really positive in broadening understanding,” Albanese said, when asked about symbolic diplomacy, including the possible return of pandas to Australian zoos.