Australia and china a joint report into the bilateral relationship

Texts adopted - Wednesday, 12 September - State of EU-China relations - P8_TA-PROV()

australia and china a joint report into the bilateral relationship

The bilateral relationship is based on shared interests and mutual respect, a joint statement on closer cooperation in , Australia and China have held two . Today, China is Australia's largest trading partner in terms of both imports and exports. Australia's terms of trade are likely to fall as new coal, iron ore and gas . Chapter 7: Australia and China in regional economic diplomacy This Report seeks to define the potential of our trade and investment relationships, economic.

The MoU facilitates Australia and China cooperating on shared development objectives on issues of regional or global importance.

australia and china a joint report into the bilateral relationship

Climate change is an emerging area of cooperation between Australia and China. The Government is pursuing a number of initiatives to strengthen and diversify this relationship.

The Agreement will enhance the growing trade and investment relationship between our highly complementary economies. It will ensure the competitiveness of Australia's agricultural and manufacturing industries, protect and ensure the competitiveness of our services providers and attract greater investment in Australia.

Australian services providers benefit from new access to China's significant and growing services sector.

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The Government has been promoting its open investment regime and Foreign Investment Review Board process, which continues to attract Chinese investors. The majority of investment has been in resources but is now moving into agriculture, tourism and infrastructure.

australia and china a joint report into the bilateral relationship

Increasing numbers of Australian businesses are entering the Chinese market with great success. However — like all cross border commercial activities — the benefits of doing business in China are coupled with considerable risks. The ' Doing Business in China ' initiative continues to inform Australian companies about how to manage the risks and offers best-practice guidelines to dispute resolution. Chinese business visitors will benefit from the increased flexibility offered by a new three-year multiple entry visitor visa, which was announced by the Government in April Australia commenced a 10 year validity visitor visa trial for eligible applicants in China in late Australians are increasingly purchasing products from China through online shopping sites.

Australia's resource exports to China are likely to continue to grow, but at a slower rate, with natural gas to some extent supplanting coal.

Australia-China Relationship Overview

Other commodities, such as wool and wheat, and other minerals will probably also do well as incomes in China rise. A probable result is that the Australian dollar will fall. This will mean a partial reversal of the huge rise in living standards which contrary to popular perception Australia has experienced in the last ten years.

At the same time, it will improve the competitiveness of other traded goods and services industries which have suffered from the strength of the currency.

australia and china a joint report into the bilateral relationship

China may be a market for some of them. China as a market for more complex goods and services The Chinese market for more complex goods and services will expand in two ways. First, rising wages and consumer demand will increase demand for more sophisticated manufactured goods where Australia has some niches of excellence, for example, in medical devices and for services such as tourism where China is already an important market. Second, as China moves production to more sophisticated goods and services, it will require high quality human resources, well-developed infrastructure, a well-developed financial sector and a good regulatory system.

Australia has the expertise to help to develop these.

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Already, China is the biggest market for Australian education services. Australia's financial sector is well regarded internationally for its efficiency and effectiveness, and its banks are among the most sound and stable in the world.

australia and china a joint report into the bilateral relationship

This expertise in government and services can be exported. It should be a palpable and distinctive presence in Chinese daily life, particularly for the urban middle classes. It also has strong economic, cultural and strategic links to the United States, and therefore a compelling interest in a positive relationship between the United States and China. Chinese and Australian prosperity has depended on the liberal, rules-based global economic system.

Australia’s economic relationships with China

Both countries have a compelling interest in the successful adaptation of the institutions of global governance to the economic and security challenges of the 21st century. A deeper partnership between China and Australia can be a powerful force for the strengthening and developing of these institutions.

China is shifting its growth drivers from investment, exports and heavy industry to consumption, innovation and services. This transformation will lead to fast growth in trade between Australia and China in real terms, much of it in services.

australia and china a joint report into the bilateral relationship

Even in a pessimistic scenario, in which average Chinese growth is below 5 per cent over the next 10 years, estimates suggest that Australian exports to China would still grow by 28 per cent and Chinese exports to Australia by 20 per cent. The biggest gains, however, would be realised if Australia and China work to implement supply-side reforms. If this reform agenda is executed successfully, Australian exports to China will grow by per cent in real terms, and Chinese exports to Australia by 44 per cent.

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