The trade between China and Australia is bringing tangible benefits to thousands of households in Australia. The latest research shows that Australian households earn an additional 2500 Australian dollars annually due to trade cooperation with China, accounting for 4.5% of their disposable income. This is another successful case of trade cooperation between China and Australia.
The preliminary research report by the Australian China Business Council (ACBC) shows that the study was managed and completed by the Curtin University West Coast Economic Center in Perth. The complete report is expected to be released in early 2024.
The author of the report stated that trade cooperation with China has brought significant economic benefits to Australian households through various channels, such as increasing employment, increasing income, and reducing commodity prices. In fact, since the signing of the China Australia Free Trade Agreement in 2015, these benefits have become more apparent.
It is worth mentioning that households in Western Australia have benefited the most, with an additional income of up to AUD 8500 per year, mainly due to China's significant investment in the resource industry.
The trade cooperation between Australia and China has also created approximately 570000 jobs for Australia, resulting in a 0.25% decrease in Australia's unemployment rate. From a consumer perspective, the variety of goods from China is abundant and the prices are more favorable, which also helps reduce the cost of living for Australian households. Moreover, states with a larger share of Chinese imports benefit their residents more.
The President of the Council stated that it is crucial for Australia and China to establish a more stable, mutually respectful, and meaningful economic and trade relationship. The core trade relationship between the two countries will continue to be strong, as it is based on the complementarity between the two economies.
China has become Australia's largest trading partner. As of 2022, China accounts for about one-third of Australia's total exports and a quarter of its total imports, with a two-way trade volume of up to $195 billion in goods.
In addition, about one-third of Australia's imported manufacturing products and 7% of its agricultural products come from China. At the same time, Australia's natural resources and agricultural products are also warmly welcomed by China, with exports of minerals and fuels accounting for over 70% of Australia's exports to China.
Australian Prime Minister Anthony Albanese stated this month that if China could further lift import restrictions on Australian goods, it would be a positive development.