China and Australia have a unique and open partnership. Australia is an export economy with resources and agriculture occupying a big slice of the country’s oversees sales. It is a well known fact that China is Australia’s biggest trading partner, but the size, scale and nature of the two countries’ business relationship may come as a surprise.
Here are the Top 5 Facts about Australia and China’s Economic Ties:
1. China is Australia’s Top Export Market – In 2014 Australia exported 34% of goods to China at a value of $98 billion Australian dollars. China is Australia’s biggest market for agricultural produce and energy products.
2. China Invests Heavily in Australia – While China’s largest investments are directed to the US, Australia is not far behind with $80 billion American dollars flowing into the country from Chinese investments in 2015.
3. Real Estate, Renewable Energy & Health – Half of the investment money coming into Australia from China was directed towards real estate in the past year. Renewable energy and health were the next main investment areas. These trends reflect China’s growing middle class consumption patterns, specifically focused on quality health, lifestyle and other related services.
4. China-Australia Free Trade Agreement (ChAFTA) – In November of 2015 both countries signed a friendly free trade agreement that means most goods enter the respective countries without duties. The aim is to have 94% of goods duty free by 2019. ChAFTA is also reflected in an increase in Chinese tourism to Australia and relaxed labor mobility which eases access for Chinese workers.
5. The Education Sector – In 2014 more than 90,000 Chinese students studied and lived in Australia. In fact, almost a third of all international students in Australia are from China. The international student tuition fees are a massive injection to the Australian education system.
Ultimately the economic and educational ties between the two countries are a means of developing stronger cross-border relationships, promoting goodwill and building collaborative business ventures in the future.