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China Proposes AI, Healthcare and Green Energy in Expanded Australia Trade Deal

Canberra evaluates innovation prospects against national security risks

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Australia's Prime Minister Anthony Albanese speaks at a Labor party election night event, after local media projected the Labor Party's victory, on the day of the Australian federal election, in Sydney, Australia, May 3, 2025. REUTERS/Hollie Adams/File photo

Overview

  • During Prime Minister Albanese’s state visit to Beijing, Ambassador Xiao Qian formally invited Australia to revise the decade-old free-trade agreement by adding provisions on AI, healthcare, green energy and the digital economy.
  • China’s proposal seeks to reinforce traditional ties in agriculture and mining while unlocking new sectors to drive shared growth.
  • Beijing positioned the expanded pact as a bulwark for multilateral trade and a countermeasure to unilateral tariffs from third countries.
  • UNSW professor Toby Walsh and other experts warn that deep AI collaboration must navigate data sovereignty rules and safeguard sensitive information.
  • Australian negotiators are now conducting detailed talks to balance economic opportunities with strategic protections.