Australia and China share a very convenient trade relationship, the latter being the largest trading partner of the nation.
On the other hand, New Zealand’s attempt to enhance its products and services to engage Australia’s active trading partners seems to pose a negative impact on the nation’s economy, according to Stuff New Zealand. The main focus of trade between China and Australia has always been iron-ore, coal and other minerals. The sufficient supply of the minerals to China makes the nation a contributor of one-third of Australia’s exports, thereby making it a healthy economy.
However, it has been recently observed that China takes little interest in these Aussie products because of the slowing Chinese construction industry productivity, according to interest.co.nz. Moreover, China has looked for other options as far as importing iron ore, coal and other minerals are concerned, which include Brazil. As a result, Australia’s export relations with China have started to struggle hard, thereby leading to a significant decline on the mining sector, increasing the unemployment rate.
To help itself, Australia has planned new strategies and shifted its trade partnership with China relating to sectors other than mining, including agriculture, tourism and education. As far as investing in agriculture is concerned, Australia has seen several options coming its way. Recently, Australia approved a Chinese investor to purchase Australia’s largest dairy firm Van Diemen’s Land Company spread across 17,800 hectare of Tasmania.
Australia and China have signed a free trade agreement that is effective since December 2015. This will pave the path for Australia to crack many other trade deals with its largest trading partner, China.
Global Trade Review reported Australian government’s ex-senior economic advisor Andrew Charlton who claimed that Australian economy is disappointing than what GDP reports have suggested. The Reserve Bank of Australia has stated that huge expenditure on the nation’s mineral and agricultural assets from China have indicated the fake representation of actual economic picture of the country, which has been said to have grown by three percent in 2015.