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China's partnership on the up down under

By Tuo Yannan (China Daily)
Updated: 2008-06-19 16:49

Ask the average Australian what they know about China and the answer would most probably lie in the clothes they wear or the toys they bought for their children last Christmas.

But this kind of stereotypical thinking has started to become a thing of the past ever since China replaced Japan as Australia's largest trading partner in 2007.

To many business leaders and policy makers in the highly industrialized and resource-rich country, China is much more than a supplier of value-for-money consumer goods. It is now looking for Chinese capital investment in its mining industry and is increasingly attracting Chinese tourists to visit the country's landscapes.

The latest high-profile Australian trade mission to China was led by Morris Iemma, premier of New South Wales (NSW), who brought a group of business leaders and government officials from one of Australia's most developed states.

Iemma told China Daily in an interview: "Our commitment is to strengthen the relationship between China and Australia and to build cooperation in trade, investment, tourism, education and research."

"We have a complementary economic relationship, built on our reliability as a supplier of resources to Chinese industry, growing tourism in both directions and partnerships across a growing range of sectors in knowledge and innovation."

Tourism was obviously high on the mission's agenda. Latest statistics show that in 2007, NSW received 269,100 Chinese tourists, who spent an estimated A$683 million, a 26 percent increase when compared to 2006.

In March Australia relaxed its visa restrictions, giving Chinese tourists more freedom to stay in the country. It is expected that the number of Chinese tourists in Australia will continue to rise as a result.

John O'Neill, executive director and general manager of Tourism New South Wales, believes the number of visitors from China, though currently small, "will grow significantly in the next five years."

"We expect there will be 1 million Chinese tourists visiting Australia by 2015," he said.

It is no secret that Australia's nature, landscape and variety offers a lot to would be tourists. This is something that O'Neill is keen to reiterate.

"You can see dolphins in Jervis Bay; play golf, and drink red wine for your health in Hunter Valley. You can hire a car and drive to the Blue Mountains for its breathtaking vista." He also added that tourists need only their Chinese driving license to drive in Australia.

Qantas Airway, an Australian airline company, is now offering a discount package to Chinese tourists at 7,999 yuan ($1,162.63). The package includes the two-way airfare and lodging for two nights.

Such deals would have been unheard of a few years ago when a similar package may have cost over 20,000 yuan.

On the course of his trip, O'Neill met with representatives from airlines and travel agents in China to discuss how they could work together to provide more choices for Chinese tourists.

He has also been lobbying to the Sydney authorities to set up Chinese-language road signs and provide free Chinese-language lessons to guides in various tourism hotspots. Such dedication is an indication of the developing nature of Australian - Chinese business.

The country has already set up a 24-hour Chinese-language hotline for tourists, and O'Neill is keen to point out that Sydney and Beijing have a time difference of just two hours. "It is easier and more convenient for Chinese tourists," O'Neill said.

Australia is the world's largest exporter of coal, and NSW accounts for 39 percent of Australia's coal exports. The premier-led trade mission also had representatives from the coal mining industry - a sector which is looking for increased partnership with China.

China is now NSW's largest partner in the coal and other natural resources sectors, Ian Macdonald, the minister responsible for natural resources, said.

He expects Chinese investment in the state's primary industry to increase by over 10 percent this year.

"We also welcome China's direct investment to other sectors such as education and services," Macdonald added. "In NSW we have some world leading technology in energy field. We provide solar technology, green technology and, even more importantly, clean coal technology."

In July, Australian Delta Electricity and Australian Commonwealth Scientific and Research Organization will work with China's largest power company, Huaneng, on the development of technology that can capture carbon dioxide emissions for safe storage underground, Macdonald said.

Cooperation in the financial sector between China and Australia is also seen to be flourishing.

Industrial and Commercial Bank of China (ICBC), China's largest bank, said last month that it had won approval from Australian financial regulators to establish a branch in Sydney.

Westpac, the second Australian bank and the only bank with its headquarters in NSW, will open a new office in Shanghai - the first offshore branch the bank has opened in 15 years.

"Westpac set up its Shanghai branch to support Australian companies doing business with China, and Chinese companies hoping to invest in Australia," Iemma said.