South Australia and China relationship
The Government of South Australia has been effectively engaging with China through a long-term partnership with Shandong Province, which celebrates its 30th anniversary in 2016.
The Government’s vision is ‘to strengthen the State’s partnership with China and enhance and deepen our long-term engagement in areas encompassing investment, trade and business, education, sport, culture, the arts, sciences, and the exchange of people, skills and ideas’.
China is South Australia’s highest export partner with an export value of $2.2 billion (in the 12 months to January 2016).
China is embracing a new model of economic growth under President Xi Jinping, with attention being placed on structural reforms and environmental protection.
China is transitioning from a period of uninhibited investment expansion to a modern, advanced economy with heavy investment in upgrading the quality of education, innovation, research and development.
A stronger focus will be placed on quality urbanisation, environmental initiatives to include the establishment of a green development fund and the promotion of clean production.
The signing of the China Australia Free Trade Agreement, which entered into force in December 2015, is set to transform the relationship between Australia and China. More than 86% of Australia’s goods exports to China will enter duty free (worth more than $90 billion). Once the Agreement is fully implemented and tariff cuts are phased in, 96% of Australian goods will enter China duty free.
ChAFTA also opens up a range of new opportunities for South Australian service providers with enhanced market access for financial services companies, law firms, professional services suppliers, education services exporters, as well as health, aged care, hospitality, construction and manufacturing businesses.