Trading with China
China is Australia’s largest trading partner in both imports and exports by a long mile.Australia is China’s sixth largest trading partner and it is China’s fifth biggest supplier of imports.It is the tenth biggest customer for exports, which is fairly big.Twenty five percent of all Australia’s manufactured imports actually come from China,Australia exports eighty four billion dollars worth of goods to China.Australia and China’s relationship has been strong ever since The China–Australia Free Trade Agreement has been signed eliminating ninety five percent of tariffs between the two countries and giving some rights for Australian and Chinese businesses in China and Australia.From just one hundred and thirteen million dollars in 1973, just after the establishment of diplomatic relations,to eighty four billion dollars in 2018.
Australia’s major exports to China
Australia exports thirty eight percent of its goods to China.Australia’s major exports to China are Iron ore,gas and coal generally are the bulk of exports to China following education and tourism which really is growing and is led by telecommunications equipment, IT,products,furniture and homewares which is slowly growing,and is considered fairly important.Demand for iron ore from China has increased a lot,with Australia supplying nearly seventy four percent of the country’s iron ore in 2018-2019. China further relies on Australia’s coal and uranium for its lighting and its own economy, mainly manufacturing.During the 2009 global financial crisis many of the countries suffered job loss and poverty but Australia wasn’t affected like the rest of the world because they were trading with China unlike other countries who their first choice of trading was with the United States., the United Kingdom., and Japan.China absorbed thirty two billion dollars (or fifteen percent) of Australia’s iron and mineral exports,
Australia’s major imports from China.
China exports seven point five percent of its exports to Australia.These for all intents and purposes major exports to Australia include Computer and electronic equipment,communication equipment and clothes which for the most part is the most of the exports.The next exports are generally precious stones,metals and coins and actually is followed by wool,meat and cereals then others.Australia heavily relies on China for buying its huge supply of minerals and iron so their mining industry can survive.
Trades that have been growing rapidly and trades that are declining
All trade between Australia and China has been steadily increasing but Iron has been in the most demand from China. China has been buying most of Australia’s Iron ore making the Australian mining industry rich and reliant on China to buy its resources.China is Australia’s largest source of international students with the export market worth eleven point seven billion dollars in 2018. In 2018, there were two hundred and fifty five thousand three hundred and sixty four Chinese students enrolled in Australian education schools, which is twenty nine percent of all international enrolments. Over one hundred and fifty three thousand of these were in colleges and universities.China is Australia’s second largest inbound tourist market (as measured by arrivals), and the largest when measured by tourism spending( ten point nine billion dollars).More than one point five million Chinese visited Australia in September 2018,the rest are steadily growing.
trading with China benefits and disadvantages
One of the benefits of trading with China is that their relationship can actually become better and it will benefit both of their economies. Australian firms and businesses can specifically thrive in China,there will basically be kind of less tariffs between the two countries.Chinese goods will generally be cheap in Australia.Australian businesses gained some new rights in terms of suing Chinese governments if policy changes negatively affects them.The disadvantage of trading with China is that if Chinese economy essentially falls it would literally greatly impact Australia’s economy and cause it to fall too.
Current times
Due to the recent situation,The Coronavirus(Covid-19)has affected Australia’s and China’s economy due to people not able to go to work and jobs lost making their already close relationship become further apart.When Australia asked China to inquire about the Coronavirus and start reporting the actual amount of cases but China refused and “threatened” Australia to refuse to go and buy their wines,goods and sending their kids to Australian universities threatening the education and tourism sector.This has further broken down Australia’s relationship with China and will affect future trades.