What this gas deal between Australia and China indicates?

Comments on the report “Australia signs $50bn gas deal with China” by Michael Sainsbury, China correspondent, The Australian, 19/08/2009, http://www.theaustralian.news.com.au/business/story/0,28124,25950461-5005200,00.html

This gas deal is a big trade deal between Australia and China. It is reported this deal will facilitate “The Gorgon venture (that) promises to be Australia's biggest resources project, pumping $40bn into the federal government's tax coffers over the next 20 to 30 years.”

It demonstrates the great complementarities between Australian and Chinese economies. Australia has abundant natural resources, including minerals and energies. Trade and external markets are important to Australia. China has a huge population, abundant cheap labour, enormous domestic market and a booming economy with rapid industrialisation. Secure supply in mineral and energies from trade is important to China. The geographical proximity of the two countries adds some natural advantages to trade between them. Trade between the two countries has huge and unprecedented potentials to benefit both countries.

The deal also indicates that it is “business as usual” in terms of the fundamental relations between the two countries, especially in trade.

While there can be tensions over certain issues between the two countries, the common interests of the two countries are overwhelming and paramount. Politicians in both countries always need to focus on important issues between them, while resolving any other issues subtly to the satisfactions of both sides. Great diplomatic skills are required to manage this bilateral relationship.