Released this week, the Australia China Business Perceptions Survey found 69 percent of respondents were optimistic about China 's economy and 66 percent were positive about the outlook for their own organization within it.

Heartened by a Christmas spirit imbued with positive economic numbers, 24 percent of the Sweeney Research businesses surveyed said they were "extremely likely" to expand their existing physical presence in China, while a further 29 percent were "very likely" to do so.

The survey confirmed that most Australian businesses operating in China are positive about the country's economic outlook.

They believe further economic reform will create avenues for expansion, and expect greater economic and political stability following China's recent leadership transition.

Eslake agrees that the economic stability stemming from 18th National Congress of the Communist Party of China late last year has bolstered confidence in Australian business sectors.

"While Australia has benefited significantly from rapid increases in China's demand for iron ore, coal, natural gas and other commodities, Australia's interests are not well served by a volatile or unsustainable growth rate in China, or by 'stop go' economic policies prompted by periodic outbreaks of inflation."

Bank of America Merrill Lynch regards China's medium term growth outlook is more favorable than that of nearly all other ' emerging' economies. To say nothing of the world's 'developed' economies.

Eslake noted, "Australia would be very vulnerable to any abrupt slowdown in China's economy caused by the build-up of unsustainable financial or other imbalances in the Chinese economy similar to those which developed in the United States and Europe leading up to the onset of the global financial crisis."

While China's Guangdong, Shanghai and Jiangsu remain the favored destinations for Australian investment, Australian businesses are also searching further afield and importantly into China's west - including Chengdu of Sichuan and Chongqing.

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