Explainer: Australia’s economic relationship with the United States — United States Studies Centre
Economic and Trade Relations. The Australia-China economic and trade relationship continues to steadily expand. China is now Australia's largest two- way. Explainer: Australia's economic relationship with the United States 30 years; Australia has received more US direct investment than China. Australia-China relations are characterised by strong trade bonds. China is Australia's largest trading partner, while Australia is a leading source of resources for.
Law enforcement and related national security concerns, including on cyber issues and counter-terrorism, is a growing area of bilateral engagement as our level of economic and people-to-people exchange expands. Australia's approach to managing differences on human rights in China aims to be constructive and is based on dialogue. Australia raises a wide range of issues with China including freedom of expression, freedom of religion, treatment of political prisoners and ethnic minorities, Tibet, torture, the death penalty, women's and children's rights, and the rights of legal practitioners and civil rights activists.
The Australia-China Human Rights Dialogue is an important forum for frank exchanges on human rights and for identifying areas where Australia can help China implement international human rights standards, including through our Human Rights Technical Cooperation Program.
Australia has largely phased out bilateral aid to China.
A small number of ongoing projects provide targeted assistance, including a human rights technical cooperation program and a program helping to strengthen the health system in the Tibet Autonomous Region.
In recognition of China's growing role as an aid donor, Australia and China signed a Memorandum of Understanding MoU on development cooperation inwhich was then renewed in The MoU facilitates Australia and China cooperating on shared development objectives on issues of regional or global importance. 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.
Promoting Australia’s economic links with China
Australian services providers benefit from new access to China's significant and growing services sector. 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. 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.
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.
China country brief - Department of Foreign Affairs and Trade
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. 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.
This expertise in government and services can be exported. Indeed, Australian banks are already operating in China and Australian experts have advised in a range of areas, for example, in urban development and health financing.
China as a competitor The development of manufacturing in Asia has been a major reason for Australia's failure to compete in many areas of manufacturing. As China moves up the value chain, more industries will be subjected to this competition. This may be ameliorated by a shift in the focus of the Chinese economy away from exporting to domestic consumption. Australia has niches where it can compete with the best in the world.Australia's relationship with China explained
It will be important to retain what lead it has in education and in the sophistication of the workforce. China as an investor Australia relies heavily on foreign investment.
On the other hand, there is evidence that Chinese businesses are keen to invest in Australia, particularly in infrastructure projects. Australian businesses have benefited from low interest rates worldwide which have been driven by the large amount of Chinese savings available for lending, both directly to Australia, but also internationally.
As these are reduced, interest rates will rise, putting downward pressure on the profits of Australian businesses, revenue and growth.
- Australia’s economic relationships with China
- Explainer: Australia’s economic relationship with the United States
China as a destination for investment While Chinese savings will probably remain high enough to fund domestic expansion, there will be room for Australian companies to invest in China. This would be a useful way for business to learn about Chinese tastes and preferences, as well as business culture. One great advantage Australia has in industries providing sophisticated goods and services is the large number of Australian speakers of Mandarin.