From beef to new energy, increasing support for China Australia trade

Tech 2023-11-04 07:52:50 Source: Network

The Chinese Ministry of Foreign Affairs announced on November 3rd that Australian Prime Minister Albanese will arrive in China on November 4th and attend the opening ceremony of the China International Import Expo (CIIE) held in Shanghai. On November 3rd, the Voice of America website reported that Albanese will become the first Australian leader to visit China in seven years

The Chinese Ministry of Foreign Affairs announced on November 3rd that Australian Prime Minister Albanese will arrive in China on November 4th and attend the opening ceremony of the China International Import Expo (CIIE) held in Shanghai. On November 3rd, the Voice of America website reported that Albanese will become the first Australian leader to visit China in seven years. In fact, since Albanese took office in 2022, various parties have been discussing when he will visit China. The New York Times stated that China is Australia's largest overseas market, but the relationship between the two countries suffered a heavy blow during the administration of former Australian Prime Minister Morrison. Regarding China Australia relations, various parties are discussing whether economic and trade can become a ballast stone.

More than 200 Australian companies will make appearances in Jinbo

Albanese's visit to China is undoubtedly a shot in the arm for the Australian business community, "the Australian newspaper reported. The Australian Prime Minister's visit to China has brought much-needed optimism to Australian companies in China. This visit coincides with the opening of the China International Import Trade Expo in Shanghai. Commentary suggests that Australia has gained a lot from previous CIIE sessions. At this year's CIIE, the Australian Investment and Trade Commission will open a national exhibition hall; At the same time, exhibition halls hosted by the governments of Queensland, New South Wales, and Victoria will also be unveiled. More than 200 Australian companies are expected to showcase their products at the CIIE, and many small and medium-sized enterprises, including those in the food, beverage, and health products industries, are striving to expand their sales in China through e-commerce channels.

Australian Trade Minister Farrell stated that the CIIE is an "opportunity to showcase high-quality Australian products". After the end of the epidemic, Australian business people actively returned to the Chinese market with "suppressed enthusiasm". The visit of the Australian Prime Minister to China has injected confidence into their cooperation with Chinese enterprises.

Chen Hong, Director of the Australian Research Center at East China Normal University, told Global Times on the 3rd that the Australian Prime Minister's visit to China and participation in the CIIE indicate that Australia refuses to follow the United States and China in decoupling and breaking the economic and trade chain, indicating that Australia also realizes that the cornerstone of China Australia relations is economic and trade relations, and hopes to improve and enhance its economic and trade relations with China through visiting China and large-scale group participation in the CIIE.

Trade with China far exceeds the total trade with the United States, Japan, and South Korea

According to information released on the official website of the Australian government, 1/4 of Australia's exports go to China, exceeding the sum of the following three countries (the United States, South Korea, and Japan). Trade relations have a direct impact on Australia's employment and economy. According to the Australian Financial Review, China is Australia's largest trading partner and Australia is China's third largest import supplier. The complementarity of bilateral relations has promoted economic exchanges between the two countries.

The Australian Institute for Strategic Policy Research (ASPI) stated in a report released in August this year that Australia's exports to China are thriving. In the first eight months of 2023, the total import and export volume of goods between China and Australia reached 152.9 billion US dollars, continuing to maintain a growth momentum, with a year-on-year increase of 4.4%. The trade volume with China accounts for one-third of Australia's total foreign trade. Data shows that iron ore is the largest commodity exported by Australia to China. Australian mining giant BHP Billiton completed exporting 1 billion tons of iron ore to China in 2014; In less than 10 years thereafter, exports of iron ore to China increased by 200%. China has become BHP Billiton's largest single market.

According to ASPI statistics, since the beginning of this year, Australia's sales to most major trading partners except China have sharply decreased. Starting from the beginning of this year, China resumed importing Australian coal, with a monthly import volume of around AUD 1 billion (approximately RMB 4.75 billion). China also imported AUD 860 million of oil from Australia in the first half of this year. During the same period, in terms of agricultural products, Australia exported wheat and other grains worth AUD 3.1 billion to China, compared to AUD 500 million two years ago.

Farrell stated that within the framework of the World Trade Organization, Australia and China have agreed to set aside some litigation and instead resolve trade disputes through negotiation. Taking barley as an example, in August this year, China decided to officially abolish the imposition of anti-dumping and countervailing duties on Australian barley. The first batch of 55000 tons of Australian barley was shipped to China that month. Taking advantage of this, the two countries reached an agreement in October this year that Australian wine exports to China will follow the same process. Farrell stated that Australia is confident in resolving its current trade issues with China in lobster and beef.

The New York Times reported that in 2019, Australia exported $800 million worth of wine to China. During the cooling of trade relations between the two countries, the sales of Australian wine decreased by 97% at one point. In addition, the Australian agriculture and animal husbandry industry is also very eager for progress in negotiations between the Australian government and China on meat exports. In 2022, China will be the third largest export market for Australian beef, and it is expected to become the largest market for Australian beef in the future.

Huge potential for cooperation in new fields such as lithium mines

Chinese Ambassador to Australia Xiao Qian recently stated that looking ahead, China and Australia have broad prospects for cooperation in both traditional and emerging fields. Especially in areas such as addressing climate change, new energy, and green infrastructure, the two countries have enormous potential for cooperation in technology, funding, talent, and markets.

Data shows that a major trade highlight between China and Australia this year is that Australian lithium mines have surpassed liquefied natural gas as the second largest export commodity to China. In the first half of this year, the export value of Australian lithium mines reached a record high of AUD 11.7 billion, compared to only AUD 470 million two years ago.

The Australian newspaper quoted Australian business representative and CEO of Fortesco Metals Group, who is about to visit China with Albanese, as saying that in addition to traditional iron ore trade, he is confident in future cooperation with China in the field of new energy.

Chen Hong analyzed to Global Times reporters that traditionally, the main trading entities between China and Australia are commodities and agricultural products. But in recent years, China and Australia have actively explored cooperation in clean energy and green economy. Australia has a high demand for clean energy. Although it is rich in mineral resources, it lacks the ability to extract, process, and produce, which is the strength of Chinese enterprises. Therefore, this means that in addition to traditional cooperation, China and Australia still face new and vast cooperation space.

The latest data released by the Australian Bureau of Statistics recently shows that as of July this year, the number of international tourists entering Sydney Airport has returned to 89.1% of the 2019 level. Among them, the number of Chinese tourists to Australia has rapidly increased, becoming Australia's second largest source of international tourists after New Zealand. Studying abroad has always been a major highlight of service trade between China and Australia. According to data from the Australian Department of Education, nearly 620000 international students received education in Australia in 2022, with Chinese students ranking first.

China Australia relations have suffered significant losses due to the recent cold weather, "the Guardian reported on November 2nd. During the reign of former Australian Prime Minister Morrison, the political relationship between the two countries was severely damaged. Affected by this, the export volume of Australian wine to the Chinese Mainland market has plummeted from about 1.2 billion dollars in 2021 to only 7 million dollars. What is even more worrying for Australian wine companies is the rapid development of wine suppliers from France, Chile, and the United States in China during this period, occupying the market originally belonging to Australian wine. Even if the relationship between China and Australia begins to improve, the Chinese market has changed.

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