Trade picks up pace as bilateral ties flourish

Expanding the existing China-Australia Free Trade Agreement will generate new growth momentum in the services and investment sectors on both sides - and help tackle challenges posed by protectionism, leading trade officials said.

In the wake of the China-Australia FTA, which took effect two years ago, business has been flourishing.

Data from the General Administration of Customs showed that the bilateral trade volume between January and November surged 28.1 percent year-on-year to $124.42 billion. Such trade has in part contributed to Australia's economic growth over the past 27 consecutive years.

Iron ore and concentrates, coal, gold, education-related travel services and copper are China's top five imports from Australia.

On the other side, clothing, telecoms equipment and parts, computers, furniture, toys and sporting goods are the top five exports to Australia.

The two countries started in-depth negotiations to further expand their free trade agreement to the services and investment industries in the first half of this year.

As they did so, Jiang Zengwei, chairman of the China Council for the Promotion of International Trade, said along with Australia's major mineral exports, opportunities for its industry in newer areas such as education and training services were thriving for Aussie businesses.

"The China-Australia FTA is widely perceived as a gamechanger in bilateral trade, which will contribute to meaningful bilateral interaction and to the larger picture of economic integration in the Asia-Pacific region too," Jiang said.

For China, the benefits are that its companies and consumers can have more access to natural resources and finished products like high-quality food and dairy products. Australians also benefit from cheaper China-made garments and electronic gadgets.

China has been Australia's largest trading partner over the past eight years.

In the light of this Ma Yu, a senior researcher at the Chinese Academy of International Trade and Economic Cooperation in Beijing, said both countries should fully review the existing free trade agreement and conduct free trade policies in more areas to promote globalization and open markets and oppose trade protectionism.

Aiming to further the country's economy, the Australian government established a new mechanism to encourage Chinese companies to invest in the country.

As a result, investments from China below A$1.07 billion ($781 million) do not need to be examined by Australia's Foreign Investment Board.

"The expansion of the China-Australia FTA will further promote coordination in both Australia's northern development plan and the Belt and Road Initiative," said Liu Qing, a researcher in Asia-Pacific studies with the China Institute of International Studies.

Liu said with doors opening in such sectors as services trade and e-commerce activities, Australia's small and medium-sized companies - the biggest driver and the biggest group of innovators in the country - will be spolit for choice.

They won't have to hunt for opportunities via second or third parties to start a business with a market potential to access over 1 billion consumers.

"Besides the services and investment sectors, people-to-people exchanges and tourism business opportunities will also be on the agenda," he said.

Australia will open a new consulate general office in Shenyang, capital of Liaoning province in 2018. That is expected to ease the pressure on processing visa applications from northeastern China.

Shenyang will play host to Australia's fifth consulate in China, after the offices in Shanghai, Guangzhou, Chongqing and Hong Kong.

"China's economic reforms and consumption upgrade will also prove beneficial to many Australian companies," said Ministry of Commerce spokesman Gao Feng.

"They believe there is strong potential for more deals in various industries, particularly in mining operations, healthcare, vocational education, innovation, high-end consumer and agricultural products."

Eager to accelerate the pace of opening-up and boost global trade, China will hold its first international import expo in Shanghai in November next year, as well as continue to optimize its range of products and approach the global market through new trade routes and regional cooperation arrangements.