With the Shanghai World Expo coming to a close 2010 has seen Australia’s business profile rise in the Middle Kingdom in lockstep with China’s new status as both Australia’s largest export market and trading partner. Austrade’s China Country Manager Christopher Wright looks at some of the key events for Australian business in the year of the tiger.
In 2009-10 Australia’s merchandise exports to China increased 17 percent to climb over A$46 billion. It is conceivable that two-way trade will top A$100 billion by the end of 2010. Continuing the closer engagement of our two economies, Chinese FDI into Australia tripled to A$9.2 billion in the calendar year 2009.
While minerals and energy still account for the greater share of Australian exports, 2010 highlighted that China’s growth is delivering opportunities for thousands of Australian companies, with a number of high-profile events showcasing Australian business capability and building on already growing levels of engagement.
The promotional push arrived amidst new projections of increasing and diversifying consumerism in China with the publication of a new Goldman Sachs report predicting that by 2020, 70 percent of China’s consumers will join the ranks of the middle class with incomes of $6000 or greater.
The Shanghai World Expo, the largest global event in 2010 saw over 200 events staged at the Australian Pavilion, including nearly 40 organised by Austrade, in a proactive program designed to make Australian business rise above the noise of a busy and competitive promotional schedule amongst the 192 participating countries.
The Austrade China team included a full-time Expo task force and drew on the resources of 80 staff across 12 offices in mainland China, including events in agribusiness, ICT, food, renewable energy, sustainable building, financial services, auto and the business of sport.
The Australia Pavilion at Expo was also the chosen venue for the international launch of ‘Australia Unlimited’ – the first step of the four-year Building Brand Australia program which aims to provide an overarching, strategic approach to positioning Australia and Australian business in the global marketplace.
While the Shanghai World Expo provided a forum for business promotion alongside a showcase of the best of Australia, the China International Small to Medium Enterprises Fair (CISMEF) in Guangzhou (September 15-18) was the major setting for deal making, representing the largest ever offshore Australian promotion for SMEs, with Australia the guest of honour and co-host nation.
The 10,000 m2 Australia Pavilion attracted 267 exhibitors including 251 Australian companies from all states and territories.
While China’s major cities in the north often dominate the business headlines, Guangdong province is the largest economy of any region in China, producing output worth over US$500 billion a year. Guangzhou itself is the third largest urban economy in China and a gateway to rapidly growing cities such as Kunming, Chengdu, and Chongqing.
Dedicated areas within the CISMEF Australia Pavilion promoted eight industry sectors: clean technology and green buildings, financial and business services, education and corporate training, creative industries, tourism, consumer products, food and beverage, and wine.
CISMEF was also the venue for the first China-Australia Green Building and Eco-city Forum hosting around 200 senior Chinese officials in charge of urban planning and construction, environmental protection, water treatment, and energy saving.
L’Oréal Melbourne Fashion Festival hosted the feature fashion component with collections by Joveeba, Nevenka, Aurelio Costarella, Nicola Finetti, Yeojin Bae, Dhini, Alpha60 and Limedrop. More than 60 Australian wineries showcasing wine-growing regions across the country were also represented.
*Pictured left: L’Oreal Melbourne Fashion Festival Fashion Show Runway CISMEF.
Another significant event in the year of the tiger was Austrade assuming responsibility for international marketing of education from Australian Education International (AEI) on July 1. Austrade is particularly aware of the importance of North East Asia for the education sector, and China’s position as the number one source of international students.
Austrade has created three new education commissioner positions, including one for North East Asia plus a Beijing-based trade commissioner dedicated for education. The existing education network in the region is further complemented by the transfer of 14 experienced AEI education specialists to Austrade.
Working with relevant Government agencies and peak bodies Austrade’s focus will be on highlighting the experience of the students, their journey, the impact of an Australian education and their successes.
Austrade is also working to capitalise on rapidly growing Chinese interest in Australia as an investment destination, leveraging an extensive network to ensuring rapidly rising FDI flows reach a diverse range of industries from resources to automotive and agribusiness.
Looking back, the year of the Tiger will be seen as a busy one for Austrade and the many Australian companies looking to build or expand their presence in China. We can only anticipate levels of activity to remain strong as China remains a standout global economic performer in the wake of the GFC.
For more information visit: www.austrade.cn
