This report, produced by Australia China Business Council (ACBC) and sponsored by NAB, is the only report of its kind to provide such a deep analysis of the benefits to Australian households from our trade with China.
Two way trade is now almost $17,000 per household, up from $3,400 just four years ago. China’s share of world GDP rose from 2% in 1990 to 11% in 2011 and provides a 5.5% contribution to Australia’s GDP at $79,150 million. Overall trade is now 23% with China up from 8% ten years ago.
China is the largest importer of Australian agriculture products, the third largest buyer of Australian manufacture goods, and a strong and growing market for the Australian services sector.
Capitalising on China’s transition from mass production to mass consumption is benefiting Australia’s goods and services, such as clean food, tourism and education increasingly within the reach of China’s growing middle classes.
Spiro Pappas, NAB Executive General Manager Global Institutional Banking, said the report breaks new ground by providing the first close analysis of the impact of bilateral trade between Australia and China on Australia’s business and economic integration with global value chains. Mr Pappas explained that many Australian firms are using partnerships with Chinese companies to help enter the Chinese market and grow their operations.
“Education and tourism are the backbone of Australian-based exports that produce huge community benefits. Increasingly, educators in Australia are considering how international students from China can be better integrated with local students in order to make educational export of Australian universities more sustainable,” Mr Pappas said.
In addressing the challenges of doing business in China, relationship building with Chinese partners is the preferred approach. Chinese partners provide Australian firms with networks of potential clients and suppliers, local knowledge, market access and resources.
Presenting a consistent message to Chinese business partners with co-ordinated Australian business activities, branding and aggregated marketing/distribution was favoured by half of the companies surveyed.
Chinese direct investment is also creating employment in Australia and expanding opportunities in agriculture and real estate. Australian providers are well placed to take advantage of the opportunities arising out of Chinese deregulating and reforms in the finance industry.
The 2014 Australia-China Trade Report was formally launched by the Minister for Foreign Affairs, The Hon Julie Bishop, at the Australia China Business Council Networking Day at Parliament House, Canberra yesterday.
To download a full copy of the report visit: NAB Business Research and Insights or the translated document at: 2014 Australia-China Trade Report (Chinese version).