Event to deepen trade

Led by Australia's Trade and Investment Minister Steven Ciobo, Australia Week in China kicked off on April 11 with the potential to bring in numerous business opportunities for the two countries.

More than 1,000 Australian business leaders will gather in cities across China during the weeklong event, with the China-Australia Free Trade Agreement generating major interest in the continent's business circles.

Many observers believe the event will further bilateral trade and investment amid a competitive global market. More and more Australian companies are embracing the need to be on the ground in China.

They are keen to move beyond transaction-based buying and selling to embrace long-term sustainable relationships with trusted local partners. With a population of 24 million people, Australia has the fourth-largest economy in the Asian region and the 12th-largest economy in the world.

It is China's seventh-largest trading partner and one of the leading destinations for Chinese foreign direct investment. In 2014 Chinese investment in Australia exceeded AUD$64 billion and two-way trade in goods and services exceeded AUD$150 billion. The strength of Australia's economy is clearly linked to China growth.

Indeed, Australia's 25 years of uninterrupted economic growth owes much to the strength of trade and investment with China.

There are many reasons China and Australia have built an enduring partnership. China and Australia are complementary economies and Australia continues to be a supplier of iron ore, coal and liquefied natural gas.

Australian minerals and energy affects millions of people across China on a daily basis, from powering factories and homes, to forging the steel used in China's web of subways and high-speed rail networks.

Australia has also helped fuel the investment and export-led phase of China's economic growth.

But as China shifts to a slower, more sustainable growth model based on consumption and a burgeoning services sector, Australian companies still have much to contribute.

Australia Week in China reflects the continent's wishes to adapt to the changing nature of growth in China.

Success stories

For decades Australia has been a reliable and safe supplier of a diverse range of agricultural commodities to China.

Recent years have witnessed incredible growth in Australia's premium food and beverage exports to China, much of it through China's booming e-commerce market.

Backed by a pristine environment and a robust regulatory and food safety regime, Australia is a partner of choice for Chinese consumers.

It's premium dairy, red meat, packaged food and wine products enjoy wide appeal among discerning consumers who demand quality and safety.

Resources, energy and agriculture are important features of the Australian economy. But their importance is far outweighed by a services sector that accounts for four out of every five Australian jobs and around three-quarters of its annual GDP. Many Australian service companies are keen to collaborate with local business partners to extend their expertise to China.

The author is senior trade commissioner and national manager of Australian trade commission in China.

(China Daily 04/15/2016 page18)