By special correspondent Wang Huan

(Caijing.com.cn) A recently signed US$ 41 billion deal for liquefied natural gas (LNG) may be regarded by some as a turning point for China-Australia relations, which have suffered in recent months. But it may be too soon to say whether heat from the energy deal will sufficiently warm bilateral relations.

China National Petroleum Corp. (PetroChina) announced August 19 that it signed a contract with ExxonMobil Corp. to buy 2.25 million metric tons of LNG annually for 20 years from Australia's Gorgon project, the official Xinhua news agency reported.

The deal worth about AU$ 50 billion is Australia's largest single export deal. Alison Broinowski, a former Australian ambassador and Australia-Asia expert, told Caijing that, "It seems that we are going back to the way we were, which is business is business, and politics is politics. It's better if we don't mix the two together."

Yet leaders of the two countries have in the past been present to witness signings for big energy deals. The presence of top leaders at contract-signing ceremonies has signaled that each side is pleased with the development of bilateral trade. This time, however, officialdom did not offer the usual bilateral attention, although Martin Ferguson, Australia's resources and energy minister, traveled to Beijing to witness the August 18 signing of PetroChina's agreement with ExxonMobil.

"China is resource and energy hungry. Australia's well placed to meet the needs of China as it goes forward on the development phase. With any relationship there are tensions from time to time but life goes on commercially," Ferguson said. "The ExxonMobil contract indicates that from time to time there are tensions in the diplomatic relationship, but commercial activity goes on."

But no Chinese media outlets were invited to report about the signing ceremony. And among the five Australian journalists who work in Beijing, a correspondent for the Sydney Morning Herald, which pays closest attention to China-Australia affairs and has been critical of the Australian government's policy toward China, was the only one not invited.

After the news of the deal spread worldwide, state-run Xinhua reported the deal on the night of August 19 under the headline PetroChina and ExxonMobil Sign Long-Term Contract for Liquefied Natural Gas. The word "Australia" did not appear in the headline.

PetroChina called the accord a symbol of cooperation and said it laid a foundation for stronger, long-term strategic cooperation. But who is this "cooperation" with -- Australia or ExxonMobil? Xinhua didn't say. Neither did the report cite a single, positive comment from a member of PetroChina's management.

A lack of communication between leaders of the two countries in 2009 cast a shadow over better relations in the past.

Since Premier Kevin Rudd was elected in late 2007, he has met twice with President Hu. He also had one meeting and one telephone conversation with Premier Wen Jiabao in 2008.

So far this year, though, Rudd has had no formal discussions with either Chinese leader. The only communication worth mentioning is a message of sympathy delivered by Wen to Australia for the wildfires in February 2009.

Earlier this year, Beijing scrapped a visit by China's Vice Minister for Foreign Affairs He Yafei because Canberra gave a visa to exiled Uyghur activist Rebiya Kadeer, who was accused by the Chinese government of having a role in the Urumqi riots July 5. This, together with a failed US$ 19.5 billion bid by China's state-owned aluminum group Chinalco for a larger stake in Australian mining giant Rio Tinto, and China's detention of four Rio Tinto employees for allegedly stealing commercial secrets, have contributed to the currently tense China-Australia relations.

Broinowski argued that the two economies have become increasingly interdependent through trade and secure, complementary ties. Both sides realize it's appropriate not to mix politics and business, he added.
But in Australia, with its heavy reliance on natural resource exports, business means politics.

Full article in Chinese: http://www.caijing.com.cn/2009-08-20/110227464.html