Following a recent delegation to China with the Deputy Prime Minister, ACBC Chairman Frank Tudor, says getting the Australia-China relationship right, is imperative.
Having recently returned from leading a business delegation with Deputy Prime Minister and Treasurer Wayne Swan to Hong Kong and Beijing, I am again reminded that on the cusps of the Asian Century, Australia must capitalise on China’s continued interest in our bulk commodities and deepen the relationship to other areas of the economy.
More than 30 Australian CEOs from the energy, resources, infrastructure, financial services and science and technology sectors gathered with Chinese counterparties in Beijing and presented a landmark report to the Deputy Prime Minister detailing the outcomes of the industry dialogue as well as public policy recommendations for leaders of both governments.
With Treasury’s China Policy Unit little more than 18 months old, China is a relatively new area for what is without doubt Australia’s most economically significant government agency. I have long been a strong advocate for increased China smarts in government and the establishment of the Unit was a welcome step forward.
It is incumbent on the Treasurer to continue to devote the resources to this important section
and increase its capacity to not only read the green tea leaves and make assessments about the future direction of two-way terms of trade, but also increase the government’s capacity to engage with agencies such as the National Development and Reform Commission to make headway on key issues such as infrastructure, productivity, labour market access and low emissions.
and increase its capacity to not only read the green tea leaves and make assessments about the future direction of two-way terms of trade, but also increase the government’s capacity to engage with agencies such as the National Development and Reform Commission to make headway on key issues such as infrastructure, productivity, labour market access and low emissions.The recent currency swap announced by the RBA and Treasury’s advocacy around the internationalisation of the RMB is one area demonstrating some tangible commercial outcomes from Treasury’s new China mandate and is an important step in the right direction.
*Pictured above: Delegates from the energy, resources and infrastructure sectors at the ACBC High-Level Industry Dialogues with Deputy Prime Minister and Treasurer Wayne Swan.
Over the coming quarter the Prime Minister is due to unveil the Government’s long-awaited White Paper on Australia in the Asian Century.
As the Government completes the White Paper, it is important for Australians to consider the Asian Century and the rise of China in the broader context of geopolitics and the global economy. To lead this debate, this month the ACBC is preparing to welcome Professor Richard Vietor to Melbourne, senior associate dean of the Harvard Business School and renowned expert on the international political economy.
Professor Vietor will lead discussion with industry leaders on the implications of the Eurozone crisis and a faltering US economy on both the Chinese and Australian economies and prospects for global growth.
China’s moves to reduce its dependency on deteriorating US and European export markets and increase domestic consumption will have a profound impact on Australia’s terms of trade because getting the Chinese economy onto a sustainable footing will make or break the longevity of the resources boom.
For more information on the ACBC and regular ACBC events, visit: www.acbc.com.au
