Trade and Investment
Apr 12, Australia's economic relationship with China and India: A snapshot position, Australia: Supplementary statistics, , released May 13 Mar 27, Since the establishment of diplomatic relations between China and Australia In , Australia's trade with China accounted for nearly one third of According to the statistics by Australia, the total imports and exports value. Feb 14, China Australia trade was worth US$bn last year, an increase of 16 percent compared to , according to official Australian data. The Australian Bureau of Statistics (ABS) stated that trade with the world's second largest economy hit a record Xi Jinping says China-US relationship “at vital stage”.
As a result, our trade and investment relationship is substantial and has developed well beyond its modest beginnings in the s. Australia's coal exports to China grew by per cent last year to become our second largest export commodity, behind iron ore.Australia's relationship with China explained
Over the last 12 months, two further LNG contracts have been signed for the supply of Australian gas to Chinese terminals. The future prospects for continued growth in our resources exports to China are good.
However, wool exports to China fell 3. Strong export growth in agricultural goods was recorded in canola, live animals, fish, edible products, wine and meat. China remains Australia's largest source of overseas students, with aroundenrolments in Australian educational institutions in The official estimate of "actual students" in wasMajor imports from China include clothing, communications equipment, computers, prams, toys, games and sporting goods, furniture and televisions.
The Australian Government is taking forward a major new 'sector by sector and province by province' trade initiative with China. We are working with provincial governments in China to create the government-to-government frameworks through which Australian companies will be better placed to secure business opportunities.
The geographic focus is on China's rapidly growing inland provinces, targeting sectors where there is a natural trade, investment and innovation fit with Australian industries.
Australia’s trade in figures
Australia and China agreed to establish Frameworks for Cooperation with Anhui and Hubei provinces, with a focus on autos, clean energy and other sectors that present strategic opportunities. Australia has the expertise to help to develop these. Already, China is the biggest market for Australian education services. Australia's financial sector is well regarded internationally for its efficiency and effectiveness, and its banks are among the most sound and stable in the world.
This expertise in government and services can be exported. Indeed, Australian banks are already operating in China and Australian experts have advised in a range of areas, for example, in urban development and health financing.
China as a competitor The development of manufacturing in Asia has been a major reason for Australia's failure to compete in many areas of manufacturing. As China moves up the value chain, more industries will be subjected to this competition.
This may be ameliorated by a shift in the focus of the Chinese economy away from exporting to domestic consumption. Australia has niches where it can compete with the best in the world. It will be important to retain what lead it has in education and in the sophistication of the workforce.
China as an investor Australia relies heavily on foreign investment. On the other hand, there is evidence that Chinese businesses are keen to invest in Australia, particularly in infrastructure projects. Australian businesses have benefited from low interest rates worldwide which have been driven by the large amount of Chinese savings available for lending, both directly to Australia, but also internationally. As these are reduced, interest rates will rise, putting downward pressure on the profits of Australian businesses, revenue and growth.
China as a destination for investment While Chinese savings will probably remain high enough to fund domestic expansion, there will be room for Australian companies to invest in China.
This would be a useful way for business to learn about Chinese tastes and preferences, as well as business culture.
Australia’s economic relationship with China and India: A snapshot | UTS ACRI
One great advantage Australia has in industries providing sophisticated goods and services is the large number of Australian speakers of Mandarin. Another is the base of knowledge and contacts built up through the trade in resources. This new architecture will provide an important platform for the government to progress negotiations surrounding the Free Trade Agreement, to build other trade and investment links and to resolve disputes.