PM unclear on Chinese AI offer amid Trump turbulence

Anthony Albanese has kept tight-lipped on China’s offer to co-operate on artificial intelligence amid tensions between the government and the Trump administration.

Chinese ambassador Xiao Qian wrote an op-ed this week saying Beijing was keen to take a “more open attitude” to the free-trade agreement with Australia.

Mr Xiao said that included bolstering “co-operation in traditional areas such as agriculture and mining” but also exploring “new growth areas in emerging fields like artificial intelligence” – a convenient offer against a backdrop of fierce AI competition with the US.

Though, even as lacklustre Australian defence spending and US tariffs strain Canberra’s alliance with Washington, the Prime Minister was hesitant to embrace or reject the offer on Tuesday.

“We will determine our policy,” Mr Albanese told reporters in Hobart.

However, he was quick to spruik the benefits of free trade with China.

“Of course, we have a free-trade agreement that was done by the Coalition government when they were in office,” Mr Albanese said.

“What we have done is to get rid of the more than $20bn of impediments of goods that were stopped from going to China.

“It’s made an enormous difference and we have, indeed, products like wine and barley have not just bounced back – they’re back higher than they were before.”

He also spruiked his upcoming trip to China, calling it an “important trading partner for Australia”.

“Twenty-five per cent of our exports go to China,” Mr Albanese said.

“What that means is jobs and one of the things that my government prioritises is jobs.”

Pressed on whether he was open to having AI covered by the China-Australia Free Trade Agreement, he dodged it, saying his “priority is jobs”.

China is in an AI race with the US.

The launch of DeepSeek in January dealt the first serious blow to the US’ global leadership in the space, with the ensuing tech sell-off wiping about $US1 trillion ($A1.5 trillion) in value off American titan Nvidia.

The Trump administration earlier this year announced a $US500bn investment in AI, eclipsing all other countries as the clear frontrunner.

About the same time, China launched a AI investment fund with an initial $8.2bn.

But with DeepSeek free and offering capabilities comparable to American counterpart OpenAI, the AI race may not be won by those who splash the most cash.