Australia-China trading grows more productive this 2015

“The best days of the Australia-China trading relationship lie ahead of us,” Australian Foreign Minister Julie Bishop stated as she presented her bilateral trade report at the Parliament House in Canberra last March 25.

Australia-China trading growth

Australia-China trading has led to the 5.5% increase to the Australian economy and reached $16,985 AU billion dollars last 2014. It resulted to more benefits to ordinary Australian households as trade with China continue to expand.

Highlights of the Australian-China Business Council (ACBC) Report

The exclusive business survey conducted by the ACBC involving more than 200 Australian ACBC members revealed that the Australian governments, firms and households continue to benefit from the Australia-China Trade through:

• GDP growth
• Tax revenue
• Employment
• Real wages

Some of the details of the report are as follow:

• Share of total trade with China has increased from 8% in 2003 to 23% in 2013
• 1 in 58 Australian workplaces is involved in direct exports to China
• Close to 200,000 jobs are sustained by direct exports to China

Australia-China trading facts

The trading relationship between China and Australia has grown over the years. Today, this relationship has become:

• Australia’s largest trading partner, with total trade in goods valued at $120.2 billion
• Victoria’s largest export market for goods, with over 16% of all Victorian goods exports destined for China
• Largest importer of Australian agricultural products and buyer of Australian iron core and coal
• Third largest buyer of Australian manufactured goods

Major export destinations of Australia (2012)

Enhancing global competitiveness through the Australia-China Trade

Many of the companies that participated in the ACBC survey believe that working with Chinese state-owned enterprises are most beneficial to Australian business and good for Australia-China trading.

It overcomes market access restrictions and trade barriers while providing intellectual property protection. It pushes them to remain globally competitive and made China an important part of their global value chain.

“Links with Chinese companies afford Australian businesses access to new markets and the ability to distribute goods and services more broadly to both Australian and Chinese consumers,” NAB head of institutional banking Asia and global head of consumer sectors, David Thorn elaborated.

Importing products from China into Australia

Based on the World’s Richest Countries gathered data, the following are the major products imported from Australia from China:

1. Electronic equipment: $9.7 billion
2. Machines, engines, pumps: $9.1 billion
3. Furniture, lighting, signs: $2.8 billion
4. Iron or steel products: $2.2 billion
5. Clothing (not knit or crochet): $2.2 billion
6. Knit or crochet clothing: $2.1 billion
7. Toys, games: $1.7 billion
8. Plastics: $1.7 billion
9. Footwear: $1 billion
10. Vehicles: $961.6 million

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Sources:
http://atlas.media.mit.edu/en/profile/country/aus/
http://www.efic.gov.au/news-room/latest-news/2014/november/australia-china-free-trade-agreement/
http://www.scmp.com/business/commodities/article/1752013/australian-china-trade-boost-competitiveness-says-survey
http://www.eldersinsurance.com.au/news/china-free-trade-agreement-set-to-boost-australian-agribusiness-in-2015
http://www.business.vic.gov.au/export/export-markets/china