Essay about Trade Between Australia And China

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.

China has, for a sustained period of time, been one of Australia's most important trade and economic partners. But this has not always been the case. Since the late 1970s China has moved from a closed, internal focused economy to more of a global market oriented one that plays a major part in other nations economies, like Australia's. Although China is technically a Socialist nation, market capitalism is actively encouraged, much the same as in Australia. In 2010 China became the world's largest exporter, with exports ranging from natural resources to manufactured goods. (CIA-World fact book) Australia's economy, in this sense, differs from that of China's. As Australia is simply too expensive to manufacture goods ("Holden, Ford,

Since the reform and opening up, the economy of China grows significantly, as an emerging economy, China's economy has made tremendous contributions to the global economy, and Renminbi has become one of the most important currency in the world. According to the survey conducted by China National Bureau of Statistics found that from 1979 to 2012, China has attained an annual average growth rate of 9.8% for its national economy, while the annual average growth of the world economy is only 2.8 % during the same period. In past 30 years, China's GDP surpassed Japan’s, China became the world 's second largest economy, in addition, the huge total volume of trade makes China become the world 's largest trading nation. The contribution of China’s

China economy started at 1978, the first economic growth reforms in 1979, the average annual Gross Domestic Product or for short GDP growth rate in China was about 5.3% from 1960-1978. China 's economy was mainly widespread of poverty, very low-income inequalities.The average national life expectancy has more than triple, rising thirty-two years in 1949 to sixty-nine years in 1985.

From January until October in 2010 imports from China to the United States this year were $299,026.0 million and only $72,276.2 million in exports to China, leaving a U.S. trade deficit of -226,749.8 million - this is according to the U.S Census Bureau U.S Foreign Trade Statistics. Here we can examine that Chinese

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

Australia has benefit from the China-Australia Free Trade Agreement (i.e. CFTA). It is believed that 96% of Australia’s exports to China will be tax free which will benefit farmers by not having to pay heavy tax on export goods such as dairy, beef, lamb, wine, horticulture and seafood.

Australia mostly imports products such as vehicles, machinery, oil, electrical components, pharmaceuticals, medical apparatus, gems and precious stones, plastics and furniture respectively because these products are cheaper to import than to produce domestically due to the high labour costs. Australia’s top 10 imports account for 64.7% of the nation’s total imports. Australia mainly exports crude oil and minerals in raw form because they do not have refineries and smelting plants mainly due to environmental issues. As a result, these go out in raw form and are imported as finish products. This is because natural resources are in great abundance in Australia. Products such as gold, coal and steel are exported to different countries so that they can use them in the manufacturing of certain products, which are then imported to Australia as finished products. Australia’s top 10 exports account for 77.7% of the nation’s total

Asia Pacific Economic Cooperation (APEC) is the pre-eminent economic rally in Australia’s region. APEC’s goal is to drive an extensive trade and investment liberalisation and facilitation agenda. It is focused on structural reform as a means of raising competitiveness and the efficiency of trade and investment flows. It has helped Australia with building and strengthening ties with other countries such as Brunei, Singapore, Philippines and other countries in the region. In 2009, 70% of Australia’s trade is with APEC countries.

More global organizations have taken advantage of globalization and free trade to sell their products in the Chinese market. This leads to greater affluence and improved living standards for the Chinese people. Citizens are now able to access a wide range of life-improving commodities such as medicine and other consumer products. The sheer size of the Chinese population, at 1.3 billion, magnifies the advantages of state-controlled advanced manufacturing. This enables the country to enjoy the benefits of economies of scale in which more output is produced at minimal cost. These are benefits that were not there during the agrarian period of production which were characterized by low output and inefficiencies.

Over the last two decades, what was once a developing country has grown into the economic superpower that is China. China passed Japan to become the world’s second-biggest economy in terms of GDP in the second quarter of 2010 and was said to be on track to surpass the United States in 2027, with an annual GDP of $14 trillion (Bloomberg). Since China became a larger and more influential country, it is now important to realize that the global economy depends heavily on China’s actions. Their exports have lowered consumer prices across the board, and their imports have impacted commodity prices. However, in recent times, China’s economy has

China is a globally renown manufacturing and production source. They possess the largest manufacturing economy worldwide and they also boast of being the largest recognized exporters. The consumer market also plays a key role in sustaining the economic growth. China has a population of 1.411 billion which serves as a big market for their products (United Nations,

From the 1970s, there has been a wave of liberalization in China, which was introduced by Deng Xiaoping. This is one of the key reasons to the rise of China to be one of the economic giants in the world. In the last 25 years of the century, the Chinese economy has had massive economic growth, which has been 9.5 percent on a yearly basis. This has been of great significance of the country since it quadrupled the gross domestic product (GDP) of the country thus leading to saving of 400 million of their citizens from the threats of poverty. In the late 1970s, China was ranked twentieth in terms of trade volumes in the whole world as well as being predicted to be the world’s top nation concerning trading activities (Kaplan, 53). This

* Main commodities imported by China include iron & steel, oil, mineral fuels, equipment, plastics, medical equipment and organic chemicals.

China is one of the biggest markets in the world. China’s immense diversity, complexity, variety & immense competitive intensity are unrivalled in the world. China’s historical development, political structure, climate & its foreign relation influence its economy & foreign trade. China’s