China eyes regional integration through FTA with Australia

The landmark free trade agreement China and Australia signed on June 17 will have a far-reaching impact on bilateral ties and contribute to economic integration of the Asia-Pacific region. Seen as one of the most progressive FTAs in trade and investment liberalization China has signed, the China-Australia Free Trade Agreement will boost bilateral trade and drive the wheel of economic development in both countries.

To begin with, it will enable the two countries to complement each other's economic advantages, deepen win-win cooperation and increase mutual benefit. Estimates from Australia show the deal is worth $18 billion and will increase GDP growth of Australia and China by 0.7 and 0.1 percentage points. This is certainly a blessing for both the economies which are experiencing a slowdown.

The ChAFTA covers a broad terrain, including trade in commodities and services, investment, e-commerce, government procurement and intellectual property rights. Under the agreement, China will grant Australia access to more than 40 areas in its service sector, including finance, healthcare, law and old age care.