4 years ago
ADDRESS TO THE AUSTRALIA CHINA BUSINESS COUNCIL
MADELEINE KING MP
Thank you for having me here today at the Australia China Business Council Networking Day, a great occasion to celebrate the unique trade relationship between our two nations.
I acknowledge the Traditional Owners of the land on which we stand, the Ngunnawal and Ngambri peoples, and I pay my respects to their elders past, present and emerging.
I also acknowledge John Brumby, ACBC National President – I commend you on bringing this event together, and of course His Excellency Cheng Jingye, Chinese Ambassador to Australia.
Allow me please also to acknowledge my colleague Senator Birmingham, the Minister for Trade, who I know addressed you earlier, and has been very welcoming to me in this new role.
Thank you too to Helen Sawczak for your work as CEO of ACBC and making today possible.
I was deeply honoured by Anthony Albanese’s decision to appoint me Labor’s Shadow Minister for Trade. Trade is of tremendous significance to Australia and particularly my home state of Western Australia as this nation’s largest export state. I am very pleased to address the ACBC in this - my first formal speech as Shadow Minister for Trade.
Australia and China have a rich history of trade and investment which has been extremely beneficial to both our nations, as all good trading relationships should be. Over the years we have traded valuable Australian metals and agricultural exports for Chinese textiles and manufactured goods.
But it’s an economic relationship that is now becoming stronger and more sophisticated through the China Australia Free Trade Agreement, which removed barriers to trade and spurred investment in and from both countries. This has included building the capacity of our universities to cater for hundreds of thousands of Chinese students who have sought further education on these shores, through to introducing the Chinese people to the greatest game and perhaps the most astounding and confusing form of football that there is – Aussie Rules footy.
Over recent years, China has become one of Australia's most important inbound traveller markets, and now Australia’s highest source of tourism related income. The number of Chinese visitors to Australia has grown strongly since 1972, supported in 1999 by Australia and New Zealand becoming the first western countries to be granted Approved Destination Status. Australia and China have sought to build further on the tourism relationship signing a Memorandum of Understanding (MOU) in 2011 on Strengthening Tourism Cooperation.
And of course it is important to recall the link between with 255,000 young Chinese students studying here and the growth in Chinese people visiting to catch-up up with family members and see where they live and study. This is made possible by the increasing number of airlines and routes between Australia and China that continue to expand our strong people-to-people links. In fact, ten years ago, only four airlines carried passengers between Australia and China. Now 15 airlines carry people between our two nations on some 15,000 direct flights every year. This stellar increase in flights has enabled 1.4 million tourists to visit from China each year who now account for 25% of our tourist visitor spending – and these visitors from China are spending considerably more than tourists from the UK, US, Japan and Korea.
I have to admit that when I visited China nearly 20 years ago, I arrived by train! Travelling overland from Hanoi in Vietnam to Kunming, we went to Lijiang and trekked over the Tiger Leaping Gorge along the Yangtze River. It was one of the more remarkable experiences of my life, seeing the rugged beauty of this part of south west China. But most importantly, spending time in a country very different to mine, and enjoying the company of friendly welcoming people had a deep personal impact.
Like the many young Chinese people that visit Australia to study, it is very important that young Australians seek to visit and explore China. I think developing a greater mutual understanding and experience of our respective countries and cultures will only be of benefit to our shared goodwill and prosperity. Of course, greater personal relationships will be of exceptional value to our trade relationship.
And it is important that more Australians understand that one in every five jobs in this country is connected to trade, and China is by far Australia’s largest trading partner. The value of our trade relationship with China is enormous - with a third of our export wealth dependent on this one relationship. In the year to April, Australian exports to China were worth $126.6 billion -- with imports from China totalling $77.9 billion in the same period – record numbers, and very important in the context of a sluggish global economy.
It is, I think, too little known, that Australia is one of the few countries with a trade surplus with China, and a significant one at that. These record exports to China underpin Australia’s resource based economy and are driven by our vast wealth in minerals, in particular the iron ore that China requires to continue to develop an economy that has lifted an astonishing 700 million people out of poverty in just my lifetime.
The mining investment boom and accompanying construction boom in Australia saw an extraordinary expansion in resources extraction that stemmed from the equally extraordinary urbanisation boom of the Chinese economy. This urbanisation and city building caused a strong demand on our export commodities which drove Australian operators to expand their capacity to meet it.
There is little doubt that these dual booms in both countries played a significant role in Australia avoiding the worst of the global financial crisis. Our relationship with China saved Australian jobs in very uncertain times around the globe. We should remember this when we talk about trade and investment and wherever strands of protectionist arguments start to appear.
But the relationship between Australia and China goes well beyond resources. As this group knows, the trade and investment relationship involves more than mineral commodities.
The increase in Australia’s export services to China has grown at more than 15% per annum over the last 10 years. There is of course tourism and the massive education industry I mentioned earlier, but there is also increasing trade in business and financial services. In fact, according to the ABS and the RBA, Australia exports more in services to China than to the UK and US combined. Given our geographic proximity and our ongoing engagement with China – this should not come as a surprise, but it is, again, an under-acknowledged part of our deeper and stronger trading relationship.
Another important aspect of our deepening ties is the opening up of China’s capital account, which has led to greater direct investment in Australia. I’d like to take this opportunity to acknowledge the work of the RBA in their analysis of Chinese direct investment and the Chinese economy as a whole, a good look at which can benefit any Australians’ understanding of our regional neighbour.
The expansion of Chinese banks operating in Australia has seen a growth in lending to Australian companies grow from close to zero in 2006, to $35 billion in 2019. This is more than North American banks lend to Australian business and on par with Japanese and European banks. So it is very clear that Chinese banks are increasingly an important financing avenue for Australian business.
On the flip side of this is Australian investment in China. Like the relationship as a whole – this investment has grown over the past ten years, and now Australian investment in China stands at $75 billion dollars. As Chinese authorities continue to encourage the increased access of international investors to the bond and equity markets of China, Australian investment levels should continue to grow.
Beyond the financial links I’ve spoken of there are the more than one million people in Australia who have Chinese ancestry and the half a million people living here that were born in mainland China. The Chinese element of our vast multicultural nation means that our links with China will always be strong and heartfelt no matter what other disagreements may come and go.
Our close ties in trade, in investment and among people means it is in all our interests to continue to grow this relationship.
Groups such as the ACBC play a critical role in the care and development of that relationship. The Council helps to build and maintain those business links; and nurture the human connections between people from China and Australia. While commentary and speeches on trade and investment are all very interesting, it is these human connections that are so important to this relationship and which will ensure this partnership between nations endure.
I’d like to make a couple of points about the current trade dispute between the US and China. As the Prime Minister acknowledged in Perth earlier this week – and as Labor has been saying for some time, protectionist sentiment and trade conflict are an increasing risk for the Australian economy. Nobody wins from a trade war, and that is especially the case for a heavily trade dependent nation like Australia.
I firmly believe there is an overarching mutual interest in maintaining international trade and open markets so as to benefit the greatest number of countries and greater number of people.
We all rise on the incoming tide. Equally we are all stranded if the tide recedes without warning. It is in Australia’s interests and those of both China and the United States to ensure there exists an open international trading system and to promote regional cooperation anchored in a rules based order.
Though our nation-states have vastly different histories; different customs and beliefs; and different political structures – our engagement in the global trade environment and leadership in the Asia Pacific binds us together, and will precipitate a strong working relationship between us for years to come.
It’s imperative that as trading nations and regional leaders, we continue to positively contribute to the rules based-order that steers our global economy. Growth and prosperity is in everyone’s interest.
ENDS
I acknowledge the Traditional Owners of the land on which we stand, the Ngunnawal and Ngambri peoples, and I pay my respects to their elders past, present and emerging.
I also acknowledge John Brumby, ACBC National President – I commend you on bringing this event together, and of course His Excellency Cheng Jingye, Chinese Ambassador to Australia.
Allow me please also to acknowledge my colleague Senator Birmingham, the Minister for Trade, who I know addressed you earlier, and has been very welcoming to me in this new role.
Thank you too to Helen Sawczak for your work as CEO of ACBC and making today possible.
I was deeply honoured by Anthony Albanese’s decision to appoint me Labor’s Shadow Minister for Trade. Trade is of tremendous significance to Australia and particularly my home state of Western Australia as this nation’s largest export state. I am very pleased to address the ACBC in this - my first formal speech as Shadow Minister for Trade.
Australia and China have a rich history of trade and investment which has been extremely beneficial to both our nations, as all good trading relationships should be. Over the years we have traded valuable Australian metals and agricultural exports for Chinese textiles and manufactured goods.
But it’s an economic relationship that is now becoming stronger and more sophisticated through the China Australia Free Trade Agreement, which removed barriers to trade and spurred investment in and from both countries. This has included building the capacity of our universities to cater for hundreds of thousands of Chinese students who have sought further education on these shores, through to introducing the Chinese people to the greatest game and perhaps the most astounding and confusing form of football that there is – Aussie Rules footy.
Over recent years, China has become one of Australia's most important inbound traveller markets, and now Australia’s highest source of tourism related income. The number of Chinese visitors to Australia has grown strongly since 1972, supported in 1999 by Australia and New Zealand becoming the first western countries to be granted Approved Destination Status. Australia and China have sought to build further on the tourism relationship signing a Memorandum of Understanding (MOU) in 2011 on Strengthening Tourism Cooperation.
And of course it is important to recall the link between with 255,000 young Chinese students studying here and the growth in Chinese people visiting to catch-up up with family members and see where they live and study. This is made possible by the increasing number of airlines and routes between Australia and China that continue to expand our strong people-to-people links. In fact, ten years ago, only four airlines carried passengers between Australia and China. Now 15 airlines carry people between our two nations on some 15,000 direct flights every year. This stellar increase in flights has enabled 1.4 million tourists to visit from China each year who now account for 25% of our tourist visitor spending – and these visitors from China are spending considerably more than tourists from the UK, US, Japan and Korea.
I have to admit that when I visited China nearly 20 years ago, I arrived by train! Travelling overland from Hanoi in Vietnam to Kunming, we went to Lijiang and trekked over the Tiger Leaping Gorge along the Yangtze River. It was one of the more remarkable experiences of my life, seeing the rugged beauty of this part of south west China. But most importantly, spending time in a country very different to mine, and enjoying the company of friendly welcoming people had a deep personal impact.
Like the many young Chinese people that visit Australia to study, it is very important that young Australians seek to visit and explore China. I think developing a greater mutual understanding and experience of our respective countries and cultures will only be of benefit to our shared goodwill and prosperity. Of course, greater personal relationships will be of exceptional value to our trade relationship.
And it is important that more Australians understand that one in every five jobs in this country is connected to trade, and China is by far Australia’s largest trading partner. The value of our trade relationship with China is enormous - with a third of our export wealth dependent on this one relationship. In the year to April, Australian exports to China were worth $126.6 billion -- with imports from China totalling $77.9 billion in the same period – record numbers, and very important in the context of a sluggish global economy.
It is, I think, too little known, that Australia is one of the few countries with a trade surplus with China, and a significant one at that. These record exports to China underpin Australia’s resource based economy and are driven by our vast wealth in minerals, in particular the iron ore that China requires to continue to develop an economy that has lifted an astonishing 700 million people out of poverty in just my lifetime.
The mining investment boom and accompanying construction boom in Australia saw an extraordinary expansion in resources extraction that stemmed from the equally extraordinary urbanisation boom of the Chinese economy. This urbanisation and city building caused a strong demand on our export commodities which drove Australian operators to expand their capacity to meet it.
There is little doubt that these dual booms in both countries played a significant role in Australia avoiding the worst of the global financial crisis. Our relationship with China saved Australian jobs in very uncertain times around the globe. We should remember this when we talk about trade and investment and wherever strands of protectionist arguments start to appear.
But the relationship between Australia and China goes well beyond resources. As this group knows, the trade and investment relationship involves more than mineral commodities.
The increase in Australia’s export services to China has grown at more than 15% per annum over the last 10 years. There is of course tourism and the massive education industry I mentioned earlier, but there is also increasing trade in business and financial services. In fact, according to the ABS and the RBA, Australia exports more in services to China than to the UK and US combined. Given our geographic proximity and our ongoing engagement with China – this should not come as a surprise, but it is, again, an under-acknowledged part of our deeper and stronger trading relationship.
Another important aspect of our deepening ties is the opening up of China’s capital account, which has led to greater direct investment in Australia. I’d like to take this opportunity to acknowledge the work of the RBA in their analysis of Chinese direct investment and the Chinese economy as a whole, a good look at which can benefit any Australians’ understanding of our regional neighbour.
The expansion of Chinese banks operating in Australia has seen a growth in lending to Australian companies grow from close to zero in 2006, to $35 billion in 2019. This is more than North American banks lend to Australian business and on par with Japanese and European banks. So it is very clear that Chinese banks are increasingly an important financing avenue for Australian business.
On the flip side of this is Australian investment in China. Like the relationship as a whole – this investment has grown over the past ten years, and now Australian investment in China stands at $75 billion dollars. As Chinese authorities continue to encourage the increased access of international investors to the bond and equity markets of China, Australian investment levels should continue to grow.
Beyond the financial links I’ve spoken of there are the more than one million people in Australia who have Chinese ancestry and the half a million people living here that were born in mainland China. The Chinese element of our vast multicultural nation means that our links with China will always be strong and heartfelt no matter what other disagreements may come and go.
Our close ties in trade, in investment and among people means it is in all our interests to continue to grow this relationship.
Groups such as the ACBC play a critical role in the care and development of that relationship. The Council helps to build and maintain those business links; and nurture the human connections between people from China and Australia. While commentary and speeches on trade and investment are all very interesting, it is these human connections that are so important to this relationship and which will ensure this partnership between nations endure.
I’d like to make a couple of points about the current trade dispute between the US and China. As the Prime Minister acknowledged in Perth earlier this week – and as Labor has been saying for some time, protectionist sentiment and trade conflict are an increasing risk for the Australian economy. Nobody wins from a trade war, and that is especially the case for a heavily trade dependent nation like Australia.
I firmly believe there is an overarching mutual interest in maintaining international trade and open markets so as to benefit the greatest number of countries and greater number of people.
We all rise on the incoming tide. Equally we are all stranded if the tide recedes without warning. It is in Australia’s interests and those of both China and the United States to ensure there exists an open international trading system and to promote regional cooperation anchored in a rules based order.
Though our nation-states have vastly different histories; different customs and beliefs; and different political structures – our engagement in the global trade environment and leadership in the Asia Pacific binds us together, and will precipitate a strong working relationship between us for years to come.
It’s imperative that as trading nations and regional leaders, we continue to positively contribute to the rules based-order that steers our global economy. Growth and prosperity is in everyone’s interest.
ENDS