Daily Times

BEIJING: Chinese Premier Li Keqiang’s official visit to Australia is expected to create new opportunities for the two countries to expand and deepen their current thriving cooperation in various fields. The economic relationship between the two countries, with the China-Australia Free Trade Agreement (ChAFTA) in particular, has brought tangible benefits and win-win results for both sides, and helped Australia survive and thrive against the backdrop of a sluggish world economy. China, which is pursuing a transition to a consumption- and service-led economy, and Australia, boasting rich resources, fine agricultural products and advanced education, are highly complementary in their economies and strategies. Their cooperation will be full of potential if China’s Belt and Road Initiative, which is aimed at promoting common development along and beyond the ancient land and maritime Silk Road trade routes, can be aligned with Australia’s ambitious plan for developing Northern Australia. In recent years, the cooperation between the two countries has shifted from a mining boom to the “dining room,” as China has been conducting an economic structural reform and consumption upgrade and Australia is seeking diversification. Areas such as services, agriculture and infrastructure construction have turned into new growth points of cooperation between the two countries. Services have witnessed the greatest change in two-way trade, rising 20 percent in the 2015-2016 fiscal year, with new fields being explored such as financial cooperation, which has seen the opening of branches in Australia of Bank of China as well as Industrial and Commercial Bank of China. Particularly since the implementation of ChAFTA, Australia’s exports of milk powder, red wine and dietary supplements to China have witnessed more than 50 percent year-on-year growth, becoming the most sought-after overseas products for Chinese consumers. ChAFTA, which went into effect on Dec. 20, 2015, has brought down tariffs for Australian beef, wine, fruits and other products to enable their easier access to the Chinese market. Moreover, China’s investment in Australia has increased rapidly over recent years, and has expanded to new areas including commercial real estate, medical treatment and renewable energy. China has been Australia’s largest trading partner, market for exports and source of imports for eight years in a row. Their bilateral trade reached some 108 billion US dollars last year. Ruan Zongze, vice president of the China Institute of International Studies (CIIS), attributed Australia’s growth for 26 years in a row partly to its close economic and trade ties with China.