Nation remains key business partner for Australia

After the Boao Forum for Asia Annual Conference 2025 finished recently, its theme of rebuilding confidence in China for foreign businesses resonated deeply. For Australian firms, China remains not just a market of scale, but an important partner in a rapidly evolving global economy. As chair of AustCham China, I see growing confidence among our members. This optimism, tempered by real challenges, reflects a pivotal moment — China's market reforms and policy initiatives are opening new doors, and Australian businesses are poised to walk through them.

The Australia-China economic relationship has weathered storms, yet its resilience shines through in the numbers. The Australian Department of Foreign Affairs and Trade reported A$212.7 billion ($134.13 billion) in goods and services exports to China in 2023-24, part of a A$325 billion two-way trade total that grew 2.6 percent year-on-year despite global headwinds. This strength isn't just about resources and commodities. Services exports surged 42.3 percent over the same period, led by education and tourism, with Chinese student enrollments rebounding strongly in 2024.

This trade backbone underpins confidence, fuelled by the bilateral thaw — wine tariffs were lifted in March 2024, and the removal of all impediments on Australian beef exports and live rock lobsters occurred in late 2024 — which restored A$20 billion in previously restricted exports through pragmatic diplomacy. Yet, this confidence rests on steady bilateral relations, not wishful thinking. Our survey shows 76.3 percent of members see stable bilateral ties shaping long-term strategies, with 76 percent noting easier business conditions and 22 percent reporting export gains. These shifts drive investment decisions and unlock opportunities, though success hinges on sustained momentum.

China's 2025 Government Work Report and other actions signal a clear intent to rebuild foreign investor trust, shifting to high-quality development — innovation, sustainability and consumer needs — over low-cost growth. For Australian businesses, this offers "different, not fewer" opportunities. The following areas of the Government Work Report are of particular interest.

Boosting domestic demand including through e-commerce is favorable for Australian exporters seeking to tap new demand.

Technology and innovation represent China's focus on new quality productive forces. It presents opportunities for Australia to collaborate in the development and deployment of technologies, which are important to each other's economic resilience and future prosperity.

The green and low carbon economy is often emphasized by China's leadership in the development of cost-effective clean technologies, which make it a key partner for Australia in its transition to net zero.

Continued commitment to opening-up is a welcome sign, reinforcing China's role as a significant contributor to global economic growth.

Support for investment from the private sector has been seen in recent affirmations of support for the role of the private sector in driving economic development, and technological innovation is welcome.

China's comprehensive push to stimulate domestic consumption through increased incomes, upgraded services and consumer incentives represent a timely opportunity for Australian exporters and businesses. Those who strategically position themselves to leverage these policy shifts — by focusing on premium quality, consumer experience, targeted demographic segments and local partnerships — will stand to gain substantially in this evolving landscape.

With predictability of China's regulatory environment a key concern for foreign investors, execution is key. We look forward to implementation and consistent enforcement of announced reforms to turn intent into impact.

China and Australia are deepening economic engagement across a range of sectors as bilateral relationship has stabilized and trade impediments have been removed. Both countries are leveraging their complementary strengths — Australia's resources and expertise and China's leading technologies and cost advantages — to identify new growth areas beyond the traditional iron ore trade.

Despite global uncertainties — US tariffs and geopolitical tensions — China's market offers robust prospects. Australian firms see strong opportunities by aligning with China's evolving economic priorities, across four key areas.

In terms of exports to China — resources, agriculture and services still lead the way.

While resource exports remain dominant, Australian businesses see growing demand for premium foodstuffs, education, critical minerals and clean energy technologies as China's economy shifts toward high-value industries.

China's more than $3 trillion retail e-commerce ecosystem in 2024, a Government Work Report highlight, is a game-changer. For exporters, 18.8 percent see "Brand Australia" as an edge here, with China's leading digital trade, e-commerce and logistics ecosystem offering a fast, efficient and scalable route to market for Australian companies.

Investment in China is seeing expanding growth industries.

Australian businesses are finding new ways to participate in China's economic transformation by investing directly in key growth industries such as agribusiness, eldercare, healthcare services, and clean energy technologies — and by expanding education partnerships through services delivery and collaboration.

Imports from China see evolving opportunities in tech and consumer markets.

While Chinese imports already play a major role in Australia's economy, there is growing potential for these imports to provide cost-effective solutions for Australia's energy transition and industrial modernization, particularly in sectors like electric vehicles, battery storage and renewable energy hardware.

Beyond these capital-intensive sectors, Australia's fast-growing e-commerce market — though a late starter — offers another dimension of this evolving trade relationship. Platforms like Temu, active in Australia since early 2025, are enabling Chinese exporters to tap into the Australian market, delivering a diverse range of cost-effective retail products, from household essentials to lifestyle goods, directly to Australian consumers.

Looking ahead, Australian businesses see strong potential in China over the coming five years. Our survey shows 57.3 percent are optimistic about market opportunities, driven by China's 5 percent GDP growth in 2025 — adding around $1 trillion, over half of Australia's $1.6 trillion economy.

For Australian businesses, China isn't just a market — it's a partner. Its scale and innovation offer unmatched potential in many areas, which are important to Australia's future prosperity. The bilateral thaw opens doors, though Australia's FIRB uncertainty challenges inbound Chinese investment — a two-way dynamic we must refine. AustCham China stands ready to guide members toward a resilient future, bridging policy and practice.

China remains an important partner because it's where opportunity meets capability. Rooted in complementary economies, rebuilding confidence isn't about erasing risks — it's about navigating them smarter. As I've said, China's not just a market to sell into — it's one to grow with. For Australian businesses willing to partner deeply, the best days lie ahead.

The writer is chair of AustCham China.

The views do not necessarily reflect those of China Daily.