The ever strengthening ties between China and Australia has been one of the great global trading success stories of the last decade. Resource-rich Australia has benefited hugely from the exponential growth in China’s economy in recent years, by supplying the raw materials that has powered the Asian boom, a development that helped Australia remain one of few developed nations to emerge from the global financial crisis unscathed.
China is Australia’s largest export market for both goods and services, accounting for nearly a third of its total exports, and in 2013-14, trade totalled almost $160 billion. Though the surfeit of Australian commodities such as coal and liquefied gas have contributed towards this close relationship, with trade valued at $15.5bn annually, industries such as high-tech and services have also gained hugely from Chinese demand. The remarkable strength of the relationship is the reciprocity – China is comfortably Australia’s largest source of merchandise imports, which total $50 billion in 2013-14.
This partnership, inclusive of a trade agreement between the two countries, will greatly benefit the shipping industry in the long-term. Increases in GDP, driven by trade will create a greater requirement for the shipping service and will therefore generate demand for containers. The entire industry is set to profit from the Chinese-Australian relations.
Find out more with the full China. Action. Money report here.