Opportunities and Emerging Trends In China

Speech at China Lunch Room Business Enterprise Centre

Liu XinVice Consul Economic & Commercial

Consulate-General of the People’s Republic of China in Sydney

14th March, 2008

content

I. China’s Economic Overview

II. China-Australia Economic and Trade Relations

III. Opportunities And Tips For Doing Biz in China

IV. A brief introduction to CCCA

I. China’s Economic Overview

Remarkable growth since reform & opening up in 1978

Average annual growth rate over 9.6% 1978-2007

Closed economy to a socialist market economy

People’s living standard improved

400 million out of poverty in past 29 yearsPer capital consumption of urban and rural

population increased over 4 timesPoor rural population dropped to 20 million

from 250 million

2007 Economic statistics

GDP 24.7 trillion RMB/3.2 trillion USD 11.4%Grain production 501.5 million tonsIndustrial added value 18.5% growthFixed asset investment 1.8 trillion USDRetail sales of Consumer goods 1.1 trillion USDImport & Export 2.17 trillion USDPaid-in FDI 74.8 billion USDForeign exchange reserve 1.53 trillion USD

China is a large and growing market

World largest population: 1.3billion

10 million more people with medium level consuming capacity each year

GDP projected reaches 4 trillion USD

China’s foreign trade in 2007

totaltradeexport

import

surplus

Total 2174 billion USD Total 2174 billion USD 23.5%23.5%

Export 1218 billion USD Export 1218 billion USD 25.7% 25.7%

Import 956 billion USD Import 956 billion USD 20.8% 20.8%

Surplus 262 billion USD 48%Surplus 262 billion USD 48%

II. China-Australia Economic and Trade Relations

Strengthened and enhanced through bilateral high level visit

Two way trade expanded with the signing of Trade and Economic Framework Agreement and launching of FTA talks (10 rounds have concluded)

Bilateral trade volume double digital growth in recent years

(Billion USD) 2002 10.4 16% 2003 13.5 30% 2004 20.4 50% 2005 27.3 34% 2006 32.9 21% 2007 43.8 33%

05101520253035404550

2002

2003

2004

2005

2006

2007

200220032004200520062007

China-Australia trade 2007 (Billion USD)

Total 43.8 33.1%

Export 17.9 32.1%

Import 25.9 33.8%

Australia is China’s 9th largest trading partner 2007 (Billion USD)

China’s top 10 trading partners

Economy Total Per Cent change %

EU 356.1 27.0

US 302.1 15.0

Japan 236.0 13.9

The ASEAN 202.5 25.9

Hong Kong SAR 197.3 18.8

South Korea 159.9 19.1

Taiwan, China 124.5 15.4

Russia 48.2 44.3

Australia 43.8 33.1

India 38.6 55.5

Australia is China’s 7th largest source of imports 2007 (Billion USD)

China’s top ten sources of imports

Economy Total Percent Change %

Japan 133.9 15.8

EU 110.9 22.4

The ASEAN 108.4 21.0

South Korea 103.8 15.6

Taiwan, China 101.0 16.0

US 69.4 17.2

Australia 25.9 33.8

Russia 19.7 12.1

Brazil 18.3 42.0

Saudi Arabia 17.6 16.4

Australia is strong in upstream resources and downstream high-tech industries with relative small scale of processing and manufacturing in the middle

China is known for its decent scale of processing and manufacturing, rich labor resources and the corresponding international competitiveness.

• China and Australia are highly complementary China and Australia are highly complementary economically: engaging gear effecteconomically: engaging gear effect

III. Opportunities and Tips for Doing Business in China

China’s WTO accession has brought huge trade/investment opportunities for the world

Average tariff rate reduced from15.3% to 9.8% 2001-2007

Non-tariff measures phased out： import quota & license

100 service sectors opened

Pascal Lamy: “A-plus for China’s performance”

Barshefsky: “Remarkable progress in opening and welcoming imports and FDI”

China is continuing to adhere to its opening up policy and welcome foreign investment.

China is stimulating its domestic demand and increasing imports from the world.

China-Australia Free trade Agreement will bring more opportunities for trade and investment between the two countries.

Tips for doing business in China

Vision for long-term benefits

Understand local condition to develop strategy

Build business network with reliable partners

Golden opportunities for business in China

Act immediately

IV. A Brief introduction to CCCAChina Chamber of Commerce in Australia Established on April 3, 2006 representing 105

Chinese investment companies across Australia, mainly from N.S.W, Victoria, Queensland and Western Australia dealing with resources & mining, shipping & logistics, banking & financial services, aviation, telecommunication, electronics and consumer goods manufacturing, healthcare, tourism and trading.

Head office in Sydney Three branches in Melbourne, Perth, and Brisbane

CCCA mission and objectives Raising Chinese companies’ image in Australia and enhancing

cooperation with main Australian business community Providing quality service to member companies, protecting their

rights and interest, promoting China-Australia economic and trade relations, enhancing communication among its members

Expanding both internal and external business opportunities, strengthening and developing cooperation with Australian business associations and councils

Serving as a bridge of understanding and friendship between China and Australia and strengthening their business ties

Want to know more about CCCA?contact

Ms. Helen HeSecretaryChina Chamber of Commerce in AustraliaL3, 39-41 York Street Sydney 2000Tel: (02) 8235 5922

Fax: (02) 9262 1084 Email: heling@chinachamber.org.au

More helpful resources for doing biz in China on the following websites

http://www.mofcom.gov.cn http://www.ccpit.org.cn http://www.fdi.gov.cn http://wmfzj.mofcom.gov.cn/

Thank You!

By Liu XinVice Consul Economic & Commercial

Consulate-General of the People’s Republic ofChina in Sydney

68 George Street, Redfern NSW 2016Tel: 02-96984498Fax:02-98987373

E-mail: liuxin@chinatrade.org.au