Chin A Country With Huge Resources

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Summary China is a country with huge resources. In 2001, China successfully joint the WTO and rapidly took an important role on the international trade. In late 1990’s, China signed an agreement with Australia and built a close relationship with Australia. In the following years to date, there is a huge changes on the performance of trade and investment between these two countries, especially on agriculture, mining and manufacture. In this article, we will use trade theory to analysis the reason of changes of trade and investment performance after the development of policy. 1. Introduction of policy In the late 1990s, the Chinese government embarked upon a Go Abroad policy that encouraged Chinese companies, particularly large ones, to…show more content…
The data is shown as follows: Chart 1: Australia’s import sources Australia’s imports from China rose strongly from $1.6 billion in 1990-91—ranked 9th—to $42.7 billion in 2010-11. China overtook the United States in 2008-09 to become Australia’s largest import source. Until 2007-08, the United States had been Australia’s largest goods & services import source increasing from $15.6 billion in 1990-91 to $36.3 billion in 2010-11. Japan was Australia’s 3rd largest import source in 2010-11 (up from $10.1 billion in 1990-91 to $18.8 billion), followed by Singapore (up from $2.1 billion to $15.1 billion) and Germany (up from $3.6 billion to $11.7 billion) Chart 2: Australia’s export markets Over the past 20 years Australia’s expanding trade with Asia has taken on an important role in increasing the national income of Australians. After growing rapidly in recent years, China became Australia’s largest goods & services export market in 2010-11, rising from $1.6 billion in 1990-91 to $70.5 billion. Japan became Australia’s 2nd largest export market, increasing from $16.6 billion in 1990-91—ranked 1st—to $48.9 billion in 2010-11, followed by the Republic of Korea (up from $3.4 billion to $24.3 billion), India (up from $2.2 billion in 1998-996—ranked 13th—to $18.3 billion), and the United States (up from $7.8 billion to $14.2
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