we need your fuel to send you iron ore
Updated ,first published
Beijing: Chinese oil companies have given Australian businesses the green light to resume talks on jet fuel exports, weeks after authorities halted shipments due to the war crisis in Iran.
China has agreed to take a “first step” to restart exports of critical jet fuel to Australian businesses, Foreign Minister Penny Wong confirmed following a three-hour meeting with Chinese Foreign Minister Wang Yi on Wednesday.
“I can confirm that the Chinese government has facilitated reaching an agreement with Australian businesses on jet fuel,” Wong told a late-night news conference in Beijing.
Wong said a phone call between Prime Minister Anthony Albanese and Chinese Premier Li Qiang earlier this month helped pave the way for the breakthrough.
He did not say which businesses or sectors were involved or when jet fuel exports would increase, saying “these are commercial initiatives, but we believe this is an important step.”
The Chinese government never officially announced a freeze on jet fuel exports, but at the outbreak of the Iran war it drastically restricted shipments to ensure its own domestic supply.
Australia gets 30 percent of its jet fuel needs from China; As Iran-US control over the strait continues for its ninth week without a clear path to a solution, supply is becoming increasingly critical.
In an interview with this imprint earlier on Wednesday, Wong revealed that he would tell Wang that China can continue to receive reliable supplies of Australian iron ore and gas only if it frees up access to jet fuels and other fuels.
“We provide you iron ore, we provide you coal, we provide you LNG and we provide food, and we want to see a reliable supply of liquid fuels, including jet fuel,” he said, describing Australia’s move towards China.
“We have a common interest in this because these inputs are essential to ensure we can continue to be a reliable supplier.
“You can’t run a mining industry without jet fuel and diesel. You need to get your FIFO people there.”
His visit coincided with signals from the British newspaper that Beijing was preparing to ease shipping restrictions. Financial Times China’s largest state oil companies have applied for export permits for fuel shipments in May, it said on Wednesday.
But Wong’s visit to Beijing on Wednesday got off to an awkward start when Chinese officials disrupted an earlier meeting between him and Chinese Vice President Han Zheng and tried to usher Australian media from the room before Wong could complete his opening statement.
A Chinese official stood in the way of the Australian government’s official cameraman, blocking his efforts to film Wong’s prepared statement discussing the global uncertainty and energy crisis caused by the Iran War.
The Australian media stood their ground until Wong finished speaking, ignoring his efforts to move them forward. Wong emphasized that the conflict in the Middle East and the closure of the Strait of Hormuz disproportionately affected Asian refineries and the Indo-Pacific Region.
“In this context, it is more important than ever that we continue to work together and find ways to work together to maintain the flow of fuel and goods,” Wong said in his opening remarks, addressing Han, who was seated across from him at a long table flanked by Chinese officials.
Wong and Australian ambassador Scott Dewar, who was sitting next to him, turned their heads towards the Australian media group after officials insisted they leave, despite journalists’ objections that the foreign minister was still talking.
Eventually, Chinese officials used a rope to remove the media from the room, and after Wong finished his remarks, which lasted several minutes, the reporters left voluntarily.
Han, who spoke at the meeting before Wong, did not mention the energy crisis in his opening speech. 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 short trip to East Asia this week, supplemented by stops in Tokyo and Seoul to discuss fuel security. The event 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 is now among the regions worst-hit by the energy crisis.
Asked about the feedback he was hearing from Asian neighbors about how these issues were affecting the position of Australia’s close security ally, Wong said there was a “shared understanding” that the US was repositioning its role in world affairs.
“There is no doubt that President Trump envisions a different role for America and the world and a different approach to the countries of the world,” Wong said.
Wong declined to speak directly about whether he was concerned that declining U.S. credibility in Asia would lead to increased dependence on China in Asia and a strengthening of Beijing’s global leadership ambitions, but acknowledged that “this is a time of great change.”
“You have a different United States. You have a different China. We need to have the confidence to navigate a different world, and we do that by building relationships in the region and beyond, which is what the government is doing,” he said.
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Lisa Visentin is the North Asia correspondent for The Sydney Morning Herald and The Age, based in Beijing. He was previously a federal political correspondent in Canberra.Connect with: X or email.
