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China’s PM voices support for free trade on Australia visit

CANBERRA — China’s Prime Minister Li Keqiang yesterday warned against protectionism, saying his country planned to close its US$50 billion (S$70 billion) a year deficit with Australia by expanding the trading relationship rather than retreating from it.

China’s Premier Li Keqiang laughs as he is shown a seven-month-old Eastern Swamp Wallaby at Government House in Canberra yesterday. His visit to Australia is the first by a Chinese premier in 11 years. Photo: Reuters

China’s Premier Li Keqiang laughs as he is shown a seven-month-old Eastern Swamp Wallaby at Government House in Canberra yesterday. His visit to Australia is the first by a Chinese premier in 11 years. Photo: Reuters

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CANBERRA — China’s Prime Minister Li Keqiang yesterday warned against protectionism, saying his country planned to close its US$50 billion (S$70 billion) a year deficit with Australia by expanding the trading relationship rather than retreating from it.

In a speech at Australia’s Parliament House, Mr Li said globalisation created “some problems” but that free trade is not to blame.

China “cannot close our doors” to solve its trade imbalance with Australia, which last year left the Chinese with the US$50 billion deficit largely through industrial demand for iron ore and coal, he said.

“We believe that to resolve trade imbalance, we need to continue to expand trade. That is the solution,” said Mr Li through an interpreter.

Mr Li’s visit to Australia and New Zealand, which started late Wednesday, is the first by a Chinese premier in 11 years. He is also the most senior Chinese official to visit Australia since 2014, when President Xi Jinping finalised a bilateral free trade deal.

Mr Li was welcomed to Parliament in Canberra yesterday by Australia’s Prime Minister Malcolm Turnbull with a 19-gun salute, amid extra security in the capital in the wake of an attack outside Britain’s Parliament on Wednesday.

Mr Li and Mr Turnbull will detail an expansion of their two-year-old bilateral free trade pact in the areas of investment and services today, as Australia seeks to minimise the impact of United States President Donald Trump pulling America out of the Trans-Pacific Partnership (TPP) trade pact in January, effectively killing the accord in its current form.

The two leaders will also discuss regional security, as Australia — which has supported US-led freedom of navigation activities in the region — seeks to reduce tensions in the South China Sea. China claims almost the entire South China Sea, through which about US$5 trillion worth of trade passes each year. Brunei, Malaysia, the Philippines, Taiwan and Vietnam also have claims to parts of the sea.

“Premier Li and I will discuss, as we have before, the importance of upholding and maintaining stability in our region,” said Mr Turnbull. “We believe China has much to contribute to global peace and prosperity in this time of rapid change.”

Mr Li said China would work with Australia to ensure freedom of navigation in distributed regions. China will “never seek hegemony and dominance”, he said, adding that China needs a stable world environment to grow its economy. AGENCIES

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