WA the engine room of nation’s exports, says Australia China Business Council
Western Australia is by far the largest exporting state to China, supplying 77 per cent of Australia’s $192bn in commodities to the nation’s largest trading partner.
Western Australia is by far the largest exporting state to China, supplying 77 per cent of Australia’s $192bn in product to the country’s largest trading partner with commodities such as iron ore, LNG, gold and minerals, according to a report by the Australia China Business Council.
The report, commissioned for the ACBC from the Bankwest Curtin Economics Centre, says China buys more than 32 per cent of Australia’s total exports – more than the combined total exports of the three next largest trading partners – Japan, South Korea and Taiwan.
Issued on the eve of this week’s visit to Australia by Chinese Premier Li Qiang, the report says Queensland is the second largest state exporting to China, providing 12 per cent of total exports to China, followed by 5 per cent from NSW. It shows that Australia’s total goods exported to China have almost tripled since 2014-15, from $74.8bn before the start of the Australia-China free trade agreement in December 2015, to $192bn.
The importance of Western Australia to the Chinese trading relationship is underlined by Premier Li’s visit to Perth on Tuesday, which includes a business meeting hosted by the Business Council of Australia and a visit to lithium processing company, Tianqi.
Arriving in Adelaide on the weekend, Premier Li noted that political ties between the two countries had gone through “a period of twists and turns” but were now “back on track.”
He said the relationship had provided “tangible benefits” to the people of both countries, declaring that “China stands ready to work with Australia”.
The ACBC report underlines the economic strength of the relationship despite recent trade tensions which affected some $200bn worth of exports including coal, wine, barley, beef and lobsters.
The trade restrictions did not affect iron ore, LNG gold and mineral exports from Western Australia but it did dampen coal exports to China.
Almost all the restrictions have now been lifted ahead of the Premier’s visit which included a visit to a winery in South Australia on Sunday.
The report estimates that Australia’s trade with China has boosted individual household income by $2600 in 2022-23.
This equates to 4.6 per cent of average household income or $29bn.
“Despite recent tensions, Australia continues to prosper from strong and dynamic economic partnership with China, thriving on trade built over decades in areas such as the export of minerals, energy, agricultural products, education, tourism and health,” ACBC president, David Olsson said, releasing the report.
He said the report confirmed the “complementarity” of the Australian and Chinese economies, “realised through the fruit of many hard-earned, long-term relationships.”
“As relations stabilise between the two nations, this is an opportune time to discuss further the benefits that this economic partnership provides,” he said.
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