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Sino-Australian biz ties to remain 'strong, flourishing'

Commerce chamber head sees solid recovery in bilateral trade, investment

By ZHOU LANXU | China Daily | Updated: 2025-04-15 00:00
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The partnership between Australian and Chinese companies is expected to remain "strong and flourishing" despite intensified global trade volatility amid the United States' tariff increases, and lingering political uncertainties, said Vaughn Barber, chair of the China-Australia Chamber of Commerce.

"A high degree of complementarity is the reason why I think the bilateral trade and investment relationship will continue to be strong and flourishing," Barber said in an exclusive interview with China Daily.

The bilateral trade and investment relationship has been recovering at a solid pace after bilateral relations stabilized, Barber said, with around 60 percent of more than 400 Australian companies recently polled by the chamber saying that they are optimistic about the opportunities in China over the next two years.

Such a recovery could be resilient despite the new tariff policies by the US administration that experts warned could trigger a global economic recession. As China has imposed retaliatory tariffs on the US, it could open up opportunities for exporters from other countries, including Australia, in areas such as agriculture and energy, Barber said.

Yet the tariff turmoil would still impact Australian companies' exports to the US, especially in the agricultural sector, while retaliatory tariffs from other countries could further weigh on global trade, he said. "It's still early days. People are concerned obviously. I think it's going to take some time to resolve."

According to Barber, Woodside Energy's liquefied natural gas supply agreement with China Resources Gas International last month — the first time that the Australian energy giant signed a long-term sale agreement with a customer in China on a standalone basis — has showcased the strong complementarity and collaboration potential of the two countries in clean energy.

Australia has abundant critical minerals and renewable energy resources like solar and wind, while China enjoys leadership in cost-effective technology, a synergy that can support Australia's net-zero ambitions, he said.

Meanwhile, Barber said Australian companies offer high-quality food and healthcare products that align with China's priorities for consumption and aged care, especially given China's vast domestic market.

"Even a so-called slower growth of 5 percent in China's GDP is equivalent to about half the size of Australia's entire economy. This presents significant new opportunities for Australian businesses, especially if they align with China's evolving priorities and shifting growth drivers."

"I don't think the upcoming federal election will change the approach from the Australian side toward the bilateral relationship," Barber said. Australia is set to hold its next federal election early next month.

"That's natural because one in four jobs in Australia revolves around trade. It (the stable bilateral trade relationship with China) is just economically too important for there to be major shifts," Barber said.

China is Australia's largest two-way trading partner, accounting for 26 percent of Australia's goods and services trade with the world over the 12 months ending June 2024, said the Department of Foreign Affairs and Trade at the Australian Government.

Moreover, Barber said that China's innovative capability has helped it achieve leadership in the commercial application of some new technologies like artificial intelligence, which could significantly assist Australia with its economic development goals.

"There's an opportunity for Australia to recognize that China is not (just) a market to sell to — it's a market to partner with and to learn from," Barber said. "Otherwise, we would run the risk of being left behind."

Barber encouraged more Australian businesses to visit China to get a clearer view of how they can work with Chinese partners and what the benefits are for both sides.

"A number of (Australian) executives have visited China recently, and all of them reported that the situation on the ground either far exceeded their expectations or was different from what they had read about."

Wen Jie contributed to this story.

 

Visitors check out imports from Australia during the seventh China International Import Expo in Shanghai in November. CHINA DAILY

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