China diplomat says hopes ties with Australia return to health soon

Relations soured last year when Prime Minister Malcolm Turnbull accused Beijing of meddling in Australian affairs - including the media, universities and politics. China has denied the charges.

A schedule for Foreign Minister Julie Bishop to visit China for a series of meetings held regularly since 2014 has yet to be agreed, despite Australia proposing dates in May and the process usually taking weeks, sources told Reuters on Wednesday.

“We hope that, through the efforts of both sides, we can soon return bilateral relations to a healthy and stable development track,” Chinese State Councillor Wang Yi told reporters at a regional forum in Singapore.

“To achieve this, we hope that Australia can do more that is in the interest of increasing mutual trust between the two countries, and not be groundlessly suspicious,” he said, after a meeting with Bishop.

Both sides had agreed to make efforts to improve relations and had also exchanged views about trade protectionism, the South China Sea and North Korea, he added.

Bishop told reporters that the talks had been “very positive”, without elaborating.

In May, the row spilled into the trade arena, after six Australian wines, including vintages from Treasury Wine Estates Ltd, and Pernod Ricard suffered delays in clearing Chinese customs.

Australia’s rift with China has unfolded against the backdrop of a much larger trade dispute between Beijing and Washington that has fanned worries of a full-blown trade war that could weigh on the global economy.