ShineWing Australia is delighted to sponsor this industry leading trade report, The Long Boom: What China’s Rebalancing means for Australia’s Future, which was produced in conjunction with Monash Business School and the Australian Centre for Financial Services.
Australia’s services sectors are set to benefit from China’s changing economy with the substantial growth of its middle class and the transition of its economy opening up significant new export opportunities, according to a newly released China Trade Report by the Australia China Business Council.
The report, The Long Boom: What China’s Rebalancing means for Australia’s Future, was produced in conjunction with Monash University, the Australian Centre for Financial Services, and supported by professional services firm, ShineWing Australia. It projects that Australia’s construction, healthcare, education, tourism and financial services sectors are set to significantly benefit from China’s rebalancing economy in the years to come.
Speaking at the launch of the report, the Chair and President of the Australia China Business Council, the Hon. John Brumby, said the conclusions from this watershed research suggest that China will continue to be Australia’s largest trading partner, playing a significant part in the transformation of Australia’s own economy into the future.
However, Mr Brumby added that “the nature and composition of this relationship will dramatically change as the Chinese economy shifts from an investment-heavy, commodity-based economy to one driven by domestic consumption and service-led growth.
“For Australian businesses to fully capture the opportunities of this historic shift, they will need to invest not only in developing an understanding of customer preferences in this market, but also in the skills and capabilities of their work force best suited to the international arena,” he said.
Director of Engagement at Monash University, Professor Edward Buckingham, said that over the past 15 years China had become Australia’s largest and most important trade partner, fuelled by its exceptional demand for commodities and resources.
According to Professor Buckingham, “the transitioning of China’s economy has raised questions about how Australia will move on from the commodities boom.
“Our analysis suggests that China’s future growth patterns will likely demand a much wider variety of goods and services from Australia than we have previously experienced, and that even a moderate increase in Chinese consumption growth could see up to 25 per cent of Australia’s services exports going to this market.
“Due the sheer size of China’s economy, and its presence as our largest trading partner, these changes will result in a major adjustment to the economic prosperity of Australia, and the overall composition of the economy. This raises a number of important strategic questions that should be discussed,” he said.
Managing Director of ShineWing Australia, Mr Marco Carlei, emphasised that while China’s rebalancing economy will present enormous opportunities, Australian businesses will need to adapt to the preferences of Chinese consumers and be far more attuned to the cultural and business nuances of the market.
Mr Carlei said “the nature of selling ‘rocks and crops’ has meant that Australian suppliers have been, by and large, insulated from the need to change or adapt the nature of their product to appeal to the Chinese market.
"In contrast, tapping into the growing demand for services in China will require significant changes to industry practice and thinking. Businesses will need to consider specific customer tastes and requirements and, where they do not have these skills, either formulate strategies to quickly develop them, or partner with organisations familiar with what will be required in this market to ensure success,” he said.
To read the report, please click here.
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