Media Release
12 November 2009
Keeping in step with China vital to Australia's trade
Speaking today at the Australian Industry Group ‘Trading with China: Beyond Risks to the Rewards’ event in Melbourne, Parliamentary Secretary for Trade, the Hon Anthony Byrne MP, said Australia will continue to benefit strongly from trade with China as the world’s fastest growing major economy undergoes rapid change.
Mr Byrne said that along with the Government’s well-timed fiscal stimulus package and low interest rates, China had played a major role in helping Australia weather the global financial crisis.
“Over the last 12 months, as global export volumes dropped by some 20 per cent, Australia's exports to China increased by 30 per cent.
“The Government has approved more than $38 billion in Chinese investment, or over 100 investment proposals, since November 2007, which has also provided a strong boost to our economy. “As China strives to be the world’s largest economy within twenty years, it is undergoing one of the greatest economic transformations in history, lifting its share of world industrial production from around 2 per cent to 13 per cent over the past 20 years.
“The Global Financial Crisis has further accelerated change within China and this is also good news for Australia.
“The demand for clean energy technologies and green urban designs which minimise the environmental footprint of buildings will increase dramatically.
“Australian companies lead the world in developing clean energy technologies, such as solar and wind power, and green urban designs which conserve energy and minimise waste.
“New trends in China’s economic policy will also enhance the development of a more consumer- oriented China.
“By 2020, according to a recent Goldman Sachs report, about 70 per cent of China’s population will be middle class.
“A rising middle class in China will create demand for new financial products to manage savings and investments, for healthier and fresher food, for new educational services and cars.
“China’s consumers will be given more spending power to buy products which Australian exporters can provide, in health and financial services, urban design and agribusiness.
“To match the rate of change in China, Austrade is refining its services to help Australian companies capture trade and investment opportunities within a rapidly changing economic landscape.
“Austrade has sharpened its focus in China on areas such as energy and minerals, green building and clean energy, agribusiness, niche technologies, financial services, logistics, business and professional services.
“Free Trade Agreement negotiations with China have been underway since 2005. I welcome the recent positive comments made by senior Chinese leaders” Mr Byrne said.
Media inquiries: Mr Byrnes Office 6277 4309, David Varga - 02 9390-2191 (Austrade)