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FTA to further boost China-Australia trade ties

(Xinhua) Updated: 2014-03-11 13:25

Analysts said that as the mining boom begins to wane and the traditional manufacturing sector, especially the automobile industry, has been hobbled by high human costs and Australian dollar, it is time for Australian leaders to find new opportunities for Australia's economic growth in the coming decade.

FTA to further boost China-Australia trade ties

Top 10 trading partners of the Chinese mainland

FTA to further boost China-Australia trade ties

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For many years, New Zealand's economy was relatively weak compared with Australia. But things changed gradually in recent years, especially after New Zealand signed an FTA with China in 2008, which has led to an explosive growth of New Zealand's exports to China, especially dairy products.

In 2008, New Zealand's export to China was only 2.2 billion New Zealand dollars. This figure jumped to 9.9 billion New Zealand dollars in 2013, a 45 percent growth year-on-year. The strong demand from China has helped boost New Zealand's economic growth to 3.5 percent, stronger than in most developed nations.

The dramatic increase of dairy exports to China in New Zealand surely made Australian farmers jealous.

Brent Finlay, president of the National Farmers Federation said that he is "excited" at the prospects of an FTA with China.

Although Australian officials have downplayed the possibility of signing the FTA during Abbott's China visit next month, it is believed that the accord could be finalized by the end of the year, just as Abbott promised not long after taking office.

Australian officials fully realize the huge market in China with the Chinese middle class growing rapidly in lock step with the country's remarkable economic growth.

Projections show that the number of Chinese earning 100,000 yuan to 200,000 yuan ($16,000 to $32,000) per year will increase to 28 percent of the population by 2015, compared to 6 percent in 2010 and those earning more than 200,000 RMB will double to 4 percent in the same year.

With more disposable income, consumers in China are becoming more quality conscious. High quality products from Western countries are increasingly welcomed.

"While China is our largest trading partner, with two-way trade reaching A$130 billion ($117 billion) last year, there is great scope to deepen our relationship well beyond our import of Chinese consumables and export of our natural resources," Robb said.

Talks between Australia and China on the FTA have been underway for almost nine years. Once signed, it will be the first FTA that China would have with a major developed economy.

Australia is China's seventh largest trading partner. It is estimated that the FTA with China could boost the Australian economy by up to A$20 billion ($18 billion).

FTA to further boost China-Australia trade ties

FTA to further boost China-Australia trade ties 

China's inflation up 2% in February 

China sees trade deficit in Feb 

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