Chin A Country With Huge Resources

Since Australia’s first free trade agreement (FTA) with New Zealand in 1983, Bilateral and Multilateral FTA’s have been a great advantage and focus in securing economic prosperity for Australia. Australia’s two-way trade in goods and services was A$616 bn in 2012. Australia has seven FTAs currently in force with New Zealand, Singapore, Thailand, US, Chile, ASEAN (with New Zealand) and Malaysia. Together, these countries account for 28% of Australia’s total trade, which displays the great benefit of bilateral FTAs to the Australian economy. Additionally, there are four bilateral FTA negotiations currently in place, two of which are substantial trading partners; China, being Australia’s largest export market (A$78.7 bn) and Japan, being Australia’s second largest export market (A$49.8 bn). The Japanese Free Trade Agreement has been negotiated, and will be a great benefit to the Australian economy, especially the agricultural sector, for example tariffs on beef

It is derived from the demand of Australia's residents for foreign goods, services and assets.

China has, for a sustained period of time, been one of Australia's most important trade and economic partners. But this has not always been the case. Since the late 1970s China has moved from a closed, internal focused economy to more of a global market oriented one that plays a major part in other nations economies, like Australia's. Although China is technically a Socialist nation, market capitalism is actively encouraged, much the same as in Australia. In 2010 China became the world's largest exporter, with exports ranging from natural resources to manufactured goods. (CIA-World fact book) Australia's economy, in this sense, differs from that of China's. As Australia is simply too expensive to manufacture goods ("Holden, Ford,

Australia and China are two countries located in the southern and northern hemispheres respectively. They are both very important and major international exporters across the globe. Australian exports reached an all time high of A$29,970 million in February of 2014, this is a gain of A$120 million from the previous year. Australia’s natural resources are one of its main exports as Australia is so rich in its natural resources such as bauxite, coal, copper, tin, gold, iron ore, silver, uranium, tungsten, nickel, lead, zinc, diamonds, mineral sands, natural gas and petroleum.

Another prospect is Australia’s mineral resources. Australia is predicted to be holding much of iron ore, coal etc. This means that we are on top of vast resources that can be sold to other countries. Japan would benefit as it purchases a large amount of our coal and iron ore. This advantage could also be used to lever a FTA with the Japanese. The infinite capabilities of Japanese technology would allow Australia to keep up with the world in many areas. Of course, most of these are technologically related.

The impact of globalisation has also changed the structure of Australia 's trade. There has been considerable growth in manufacturing and service industries with limited growth in the rural sector (Table 2). This reflects a combination of changes in world demand and domestic structural reforms.

The source above displays Australia’s top 10 exports to China form 2001, and 2011. We can observe that in just ten years the trading links between Australia and China have grown much stronger. We can see that in 2001 Australia sold $1,369 million AUD worth of iron ore to China. In just ten years, that Australia is now selling 32 times that original amount. We can also see an increase in not just iron ore, but in all the other goods and services displayed in the source. This shows in general that Australia’s export links have strengthen over the years

China is one of the biggest countries along with Thailand and Japan who make goods for Australia. Being Australia’s third largest merchandise trading partner and seventh largest service export market in 2003, China might significantly affect the Australian economy through any changes made to its trade policies. A more liberal Chinese trade policy could increase Australia’s income in part through greater market access for its exports. Of every hundred dollars of national

This essay analyses the Australian-China bilateral relationship since 1945 and in particular its political significance to Australia. Many global factors have influenced this relationship, including the advent of the Cold War, the Korean War, the Vietnam War and the collapse of the Soviet bloc European nations. In addition, internal political changes in Australia and China have both affected and been affected by the global changes. It will be analysed that Australia’s bilateral relationship with China has always had a sharp political edge but that approaching the new millenium economics and trade considerations are shaping Australias and for that matter Chinese politics.

With a GDP of over $1 trillion USD, the Australian economy is among the largest in the world (Cornett and Saunders, 2014). Australia is trading partners with the United States, China, and Japan, but their economic ties are mainly centered in the Pacific Rim. Exports are crucial to the country’s GDP and this has created problems regarding sustainability in the Australian economy.

Asia Pacific Economic Cooperation (APEC) is the pre-eminent economic rally in Australia’s region. APEC’s goal is to drive an extensive trade and investment liberalisation and facilitation agenda. It is focused on structural reform as a means of raising competitiveness and the efficiency of trade and investment flows. It has helped Australia with building and strengthening ties with other countries such as Brunei, Singapore, Philippines and other countries in the region. In 2009, 70% of Australia’s trade is with APEC countries.

In contrast, China’s merchandise exports to Australia are mainly labour intensive manufactures, with the major categories being textile, clothing and footwear products, as well as machinery and electronics. Together these items amounted to $4 billion in 2003, around 70 per cent of China’s exports to Australia. China’s gross domestic product has been growing annually at 7 per cent on average over the past five years, reaching $6.4 trillion (in purchasing power parity index) in 2003 ( Anderson K., 1995). China’s integration into the world economy through trade was one of the key drivers of this strong economic growth. China has adopted measures to transform its economy from a centrally planned system to a more market oriented one. These measures included the opening of China’s economy to world trade. Many of the Australian companies such as Black & Decker, makes many of its power tools and locks in a factory it owns in Suzhou, outside Shanghai, and a separate 50/50 joint venture plant in Shenzhen, southern China's manufacturing boomtown. Ford Motor also planned to buy up to $3 billion worth of auto parts from Chinese suppliers. Wal-Mart also spends more than $18 billion annually on products made in China (D. Uren, The Australian News, 2008).

Australia’s main trading partners are China, Japan, the United States, Republic of Korea and Singapore. Nearly half of Australia’s trade activity in terms of imports and exports are with these 5 countries alone. Particularly with the recent growth of the Chinese economy, Australia’s chief trading partner, the country has seen growth in its exports. However very recently the growth of the Chinese economy has been slowing which is a risk to Australian exports.

The information in the table highlights the impact of Asian foreign markets and the growing. China and Japan have been indifferently on the top position and has seen to takeover Unites States in the years stated (dfat.gov.au., 2016). There is no percentage, so the drawback lies in accurate comparison between countries amongst the distribution of export markets.

Many New Zealanders help harvest and build much of their exports. New Zealand main exports are dairy products, meat, and fish (Central Intelligence Agency). They also export different woods or wood products as well as machinery. The World Factbook states that the total amount of exports are $38 billion. New Zealand’s partners for exports are Australia, China, Japan, and the United States. They get imports from the countries listed prior in addition to Singapore and Germany. The imported goods total about $37,000 and include electronics, vehicles, machinery, and textiles (Central Intelligence Agency).