Presentation: The Benefits of Australia's Trade and Economic Relationship with China - BCEC (2024)

FAQs

Presentation: The Benefits of Australia's Trade and Economic Relationship with China - BCEC? ›

BCEC estimates that Australian trade with China increased disposable income by an average of $2,600 per Australian household in the financial year 2022-23, reaching as high as $8,700 in some states. This equates to 4.6 per cent of disposable income per capita and $29 billion on aggregate to Australian households.

The largest increase is for Western Australia, with average household income gains estimated to be about $8,500 per annum. Australia's trade with China contributes to around 569,000 jobs nationally, equivalent to 4.2% of total employment.

China is Australia's largest trading partner. It buys almost a third of all Australian exports, and is the top overseas market for many Australian goods and services. Trade and investment with China is a big part of Australia's future. The Australia-China economic relationship is extensive and growing strongly.

The China–Australia Free Trade Agreement (ChAFTA) entered into force on 20 December 2015. ChAFTA is delivering enormous benefits to Australia, enhancing our competitive position in the Chinese market, boosting economic growth and creating jobs.

Australia is China's seventh largest trading partner. Forty years ago, two-way trade was less than $100 million. Now it is more than $100 billion. Cooperation on climate change issues is an important part of the bilateral relationship.

Trade between Australia and China reached A$327 billion ($216 billion) last year as Beijing's trade blocks eased. Australia is the biggest supplier of iron ore to China and China has been an investor in Australian mining projects.

Why it matters: The United States imports roughly half a trillion dollars in goods from China, including clothing, shoes, electronics, furniture, and household appliances. Those imports help improve the lives of many Americans, particularly those in low-income households who benefit from lower prices on everyday goods.

Basic Info. Australia Balance on Merchandise Trade with China is at a current level of 7.197B, down from 7.488B last month and up from 3.999B one year ago. This is a change of -3.89% from last month and 79.97% from one year ago.

China has grown to dominate the Australian economy, providing 25% of our imports and taking another 25% of our exports. Ever since the early 2000s the price of resources has been high and that is due to Chinese demand. Building homes and highways for a billion people will use a lot of iron ore and coal.

China is our largest trading partner, accounting for 27% of our two-way trade. More than 40% of our exports go to Japan, Korea, India, the US, Taiwan and Singapore. The Association of Southeast Asian Nations (ASEAN) is also a significant bloc for Australian trade.

What is the trade relationship of Australia? ›

China is our largest trading partner, and last year two‑way trade between Australia and China was $327 billion. That's higher than our next five trading partners.

Travel services dominated Australia's trade in services with China. Australia's exports of Travel services to China were valued at $10.1 billion in 2016 and have increased by an average 11.9 per cent per annum over the past ten years (Chart 3).

In 2020, China placed trade restrictions on several Australian exports in response to the Australian Government calling for an inquiry into the origins of COVID-19. On 28 March 2024, following negotiations and a thawing of Australia-China relations, one of the last remaining tariffs – on wine – was lifted.

Trade and investment with China is central to Australia's future prosperity. In 2020, China bought $102 billion of Australian exports, more than a quarter of Australia's total exports to the world; China is our top overseas market for agriculture, resources and services.

After establishing diplomatic relations with the People's Republic of China in 1972, Australia established an embassy in Beijing in 1973. The Australia-China bilateral relationship is based on strong economic and trade complementarities and longstanding community and cultural links.

Mobile phones and telecommunication equipment, which are Australia's biggest import category from China, are a possible exception. China's sales in Australia have risen by only 4.7% to $9.9 billion since 2019-20, while imports from other suppliers have risen by 33.7% to $7.8 billion.

Major imports from China include clothing, communications equipment, computers, prams, toys, games and sporting goods, furniture and televisions.

Australia is a natural gateway for global trade, an open economy, with ideal access to the dynamic Asia-Pacific markets. As a nation, we are diverse, multicultural and welcoming with a highly-educated and innovative workforce.

China does not register exports to Australia. The main products exported from China to Australia were Computers ($5.14B), Broadcasting Equipment ($4.42B), and Cars ($2.61B).

Why FTAs and who they are for. FTAs aim to reduce or remove barriers to trade and investment. They can provide a competitive edge for Australian businesses, exporters, importers, producers, and investors to do business and seek opportunities.