Trade Between Australia and China

The Chinese and Australia economies have many similarities and differences, including the size of the economies, growth rates, unemployment, inequality, standard of living, environmental issues and the roles the different governments have in influencing and modifying these factors of the economy.

Although Australia remains geographically isolated from the world, international trade still remains a main factor that allows Australia’s economy to prosper. Australia’s long history of trade has created tight links and connections with other nations. Being a member of many worldwide organisations, Australia has produced many free trade agreements with countries around the world. However, recently Australia has seen a change in the composition and direction of its trade and has developed a strong trade link with the Asia-Pacific Region.

Australia and China adopt very different economic systems in order to cater the best for their society. However, Australia's economic system is more successful than China's and, due to the writer's right-wing value system, will be measured in terms of environmental efficiency, labour and entrepreneurial resource efficiency and the standard of living.

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.

An active APEC (Asia Pacific Economic Corporation) member, Japan is the second most dominant world economic power. Being a world power endows it to having an influential role in not only in regional affairs but also global.

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

Many products we use today are made in China. Trade between Australia and China has heightened in the last couple of years. China has one of the world’s largest economies. It has an increasing role in shaping the world economy, accounting for a third of the increase in the world’s gross domestic product and imports for the period 2000 to 2003 (The Economist 2004). It is also home to a population of 1.3 billion inhabitants, consuming a variety of goods from food items to luxury commodities, toys, clothing, gifts, most car parts and many more things Australia benefits from. For non-agricultural goods, Australian import tariffs are generally low. The most notable exceptions are on motor vehicles and textiles, clothing and footwear imports.

Australia and China both adopt different economic system in exchange for a substantial economic growth. China is in the process of a developing nation employing a command economy, which means the decisions on production and investment is decided upon the government. In comparison, Australia is a highly developed nation with a mixed market economy, meaning that the economy has a certain degree of planning involving the government, but the private sector dictates most of the economic decisions.

China, Australia’s second larges export destination, is a growing economy. The labours in china are really cheap, so a lot of companies set up new manufactures in China and close down manufactures in other countries. A Chinese is satisfied getting 800 yean month, three meals a day and a bed to sleep. There are also people, who are willing to work for even lower labours. So if Australia would have a FTA with china it could profit from the fast growth and development of China. China’s growing manufacturing industry needs large volumes of raw materials, which could be supplied by Australia. “Most Farmers and key agricultural exporters –wool, beef, dairy and grains- have set up their sights

Australia has several ties with other countries. These ties are established in several ways, one of which is through trade. The nature of trade includes exporting and importing goods and services which form trade links with partner countries. Trade comes with its advantages and disadvantages. Australia also takes part in multilateral agreements, such as APEC, to be able to strengthen trade links.

This number shows the amount of land area that they are able to produce goods on and build factories and warehouses for manufacturing and distributing goods. The capital of china Beijing is home to many Australian workers who work as consultants between the Australian and Chinese companies, these men and women hold a very important position in the trade between Australia and china as the can overcome language barriers and set up and maintain trade deals and relationships between large companies. China, with a population of 1,399,119,802 as of the 22nd of February 2015 has the world’s largest population. This is tremendously advantageous to Australia’s trade situation of importing and exporting to and from china. One of the main advantages of the relationship between Australia and China is that China has strong demands for iron ore, coal and liquefied natural gases, these

Australia is unlikely to fight against newly appearing and developing countries in the production of a low-cost and large manufacturing, especially with our neighbours. In fact, as we are constantly reminded, Australia is a high wage, high skilled country and could be more successful if changes regulations are needed to meet the demand that this brings. The reality is that the increasing cost of doing business in Australia is beginning to affect this area, with loyalty promises to major projects being tested. (Chris Pash, June 5 2014, 11:28am)

Australian trade direction changed from UK to Japan and then switched to China recently followed by the growth of Chinese economy. Between 2012 and 2013, agricultural products worth $38,268 million in total were export to the top country - China.

China is evenly switch from an industrialized based development measure and export attend economy to a consuming attend retrenchment with a more tenable development rate. This user target need less value exhaustive manufacturing. With an increasing average stylish China and raising urban population there is developed demand for a fresh environment system and increase feature of life. Afterward the importunity for coal and another material resources has experienced an accelerated lessening. This flow has an abundant effect on the worldwide economy and especially Australia based on historical of China grand balances of reliance on their capability exports.

Trade Barriers: High tariffs are still maintained on exported products that compete with domestic industries in China (Office of United States Trade Reprehensive) . China’s tax regulations are into conformance with international standards (Parliament of Australia Senate) . Therefore at present, cut flower exports to China carry a 70 percent import tax, including cost of transport, plus a value-added tax of 17 percent (Richard Tomlinson, 1995) .