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Austrade Review of the Significant Investor Visa program

It is now two years since the new investment framework was introduced to the Significant Investor Visa (SIV) program. At the time, it was flagged that the mandated venture capital component may be doubled to $1M or 20% of the $5M complying investment. Austrade recently called on the industry to submit comments for review.

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What is China’s One Belt One Road initiative and why is it important for Australia?

At the end of 2013 Chinese President Xi Jinping announced one of China’s most ambitious foreign policy and economic initiatives, the Silk Road Economic Belt and the 21st-century Maritime Silk Road. It consists of:

  • The land-based “Belt” – the historic overland Silk Road trading routes that connected China, via Central Asia, to Europe and the Middle East
  • The oceangoing “Road” – the maritime equivalents to the south, linking China, Southeast Asia, India, Africa and potentially Australia after Chinese President Xi Jinping called in April last year for the alignment of One Belt, One Road with Australia’s northern development plan.

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SME Radio: Aus-China Business Channel with Stacey Martin

As a medium for accessing niche information and stories, podcasts have seen an explosion over the last few years. You can listen, learn and be entertained whilst driving, going for a walk or taking time out to relax.

SME Radio is producing shows “by SMEs for SMEs” designed to help small business owners reach their potential. Topics including sales and growth strategies, human resources, business succession and doing business with China which I’m delighted to be hosting.

About Aus-China Business Channel 

China has seen unprecedented growth over the last three decades and Australia has benefited from the demand for our resources however with strong growth in household wealth, there is increasing demand for a range of services which Australia is well positioned to deliver.

The Aus-China Business Channel (ACBC) will provide SMEs with insights on how to position Australia’s world-class capabilities, providing practical information to help navigate these growth opportunities.

Interview with CT Johnson, General Manager, Basis Point Consulting

In the first of the weekly SME Radio programs I interview CT Johnson, author of “Riding The Dragon – managing your Chinese investors, partners and employees.”

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CT is the General Manager of Basis Point Consulting, founded in 1996 by David Chin, which provides business intelligence and networking opportunities for participants in the investment and financial markets in Australia and Asia.

In this podcast, CT tells us about his career journey from the US to Russia and working for global company Huawei in China before moving to Australia. He shares insights on the importance of building relationships or guanxi, the do’s and don’ts for business interactions and that a contract is just the start of the negotiations with your new Chinese business partner.

  • Listen to the Podcast – you can listen to the interview here.
  • Read the Book – you can access a copy of “Riding the Dragon – managing your Chinese Investors, Partners & Employees” click here.
  • Sign up for market intel and events on the latest trends – For market intelligence from HMW in China, to property development, investment migration and a range of events on the latest hot topics register your details at the Basis Point website here.

Interview with Cynthia Dearin, Dearin Associates

Have you ever gone to work wearing a bullet-proof vest? Cynthia Dearin has during her career as a diplomat and management consultant in the Middle East! Cynthia is the author or Camels, Shiekhs and Billionaires and in this interview she discusses how she came to be advising SME’s looking to enter into fast-growing markets across the MENA region and now China.

In this episode of Cynthia highlights the differences between market entry strategies for marketing products versus marketing services. She also explains how tools like the Market Entry Strategy Stress Test can help identify areas that may require attention.

  • Listen to the Podcast – you can listen to the interview here.
  • Read the Book if you would like to get hold of a copy of “Camels, Sheikhs and Billionaires “ click here.
  • Find out about theInternationall Business Accelerator – and other great programs here.

Interview with John Grealy, Doltone House

Doltone House, the iconic conference and meeting venue on the waterfront at Pyrmont and in the Sydney CBD has been extending their offering to the Chinese business incentive conference market.

In this podcast, find out why Aus-China organisations such as BasisPoint, Australia China Business Council, AccessCN and our Expat Advisors Community Melbourne Cup event are taking advantage of Doltones tailored proposition to the Chinese market.

A veteran in sales, John also shares his tips on using social media and conversation triggers for building a successful business.

  • Listen to the Podcast – you can listen to the interview here.
  • Download the brochure -in Chinese here. 
  • Check out the website – see the range of venues here. 

View our growing suite of interviews to support SME’s doing Aus-China and Aus-Asia business here. 

About the Host

Stacey Martin is the founder of Expat Advisors Community network for professionals with internationally connected clients. With an extensive career in financial services and private wealth management, today Stacey consults with SMEs wanting to do business in China, drawing on her experience working with Chinese investors. This includes market entry strategies, facilitating strategic business connections, professional services introductions, and navigating business culture. 

What China’s Rebalancing Means for the future of Australia’s finance sector

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The Australia China Business Council (ACBC) and ShineWing Australia recently released the industry leading 2016 Australia China Trade Report – The Long Boom: What China’s Rebalancing Means for Australia’s Future.

The report, produced in conjunction with Monash Business School and the Australian Centre for Financial Services, serves to highlight some of the opportunities that may flow to Australia as a result of “China’s Rebalancing” from an infrastructure investment-led, to a consumer demand-driven economy.

Australia’s Finance and Insurance sector

China presents an enormous opportunity to expand it’s current output, share of the economy and jobs. As a major employer of Australian workers and the largest single contributor to corporate tax receipts, expanding this sector through greater trade and investment with China will have a major flow-on impact for the wider economy.

Some of the  key messages for the finance sector include:

  • Financial services is Australia’s single largest industry contributing more gross value to the Australian economy than the mining sector
  • China could represent up to 19% of Australia’s financial services export market by 2026
  • China’s share of the financial services export pie is projected to grow from 11% to 16% in 2026, which will result  in the growth of more than 110,000 jobs.

“Like healthcare and education, financial services will be a key driver of Australian economic growth over the next decade”.

Continued Opportunities for Growth

Modelling by the Australian Centre for Financial Studies rebuts the view that China’s softening growth will have a predominantly negative impact on Australian trade. In particular:

  • China’s demand for Australian exports will grow as it modernises its economy and the middle class grows by an estimated 109 million adults
  • China will claim just over 31% of Australia’s exports by 2025, up from 28% at present
  • Close to one million new jobs could be created across the five key industries of financial and insurance services, healthcare and social assistance, education, tourism and construction by 2026.
Conclusion

The future of the Australia-China trade relationship is one of both opportunity and challenge. Key opportunities lie in industries other than mining that align with China’s likely growth profile. The rising Chinese middle class presents an opportunity to broaden and deepen the Australia-China bilateral economic relationship in the generations to come with services already accounting for around 75% of Australia’s economic output and some 85% of employment.

Even with a relatively conservative forecast for Chinese economic growth, China appears set to remain Australia’s dominant trading partner. However, the ability to capitalise on Chinese demand will be contingent on policy decisions, such as visa and investment policy, foreign investment screening thresholds, export finance and insurance.

Tim Hogan-Doran, ShineWing Australia
Tim Hogan-Doran, ShineWing Australia

For more information on the report and it’s implications for Australian businesses, contact community member Tim Hogan-Doran from ShineWing Australia or download the full report here.

Alibaba has just opened an office in Australia – good news for SMEs

alipay_scanThe Australia Week in China (AWIC) delegates that visited Alibaba’s head office in Hangzhou in April 2016 saw the announcement of an office being set up in Australia.  Global President Michael Evans and the local team including James Hudson, previous NSW CEO for Australia China Business Council, have just completed a roadshow.

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