| Australia’s total trade recorded US$245 B in | | | | Being the factory of the world, China has also |
| 2006. Of this, total imports were US$127 B, while | | | | increased rapidly as a source of merchandise imports |
| total exports were US$118 B. Australia is often | | | | for Australia, accounting for 14% of the total in 2005, |
| regarded primarily as a producer of agricultural | | | | almost double the 7.6% in 2000. Key imports from |
| commodities, minerals and energy. Its top export | | | | China includes machineries, clothing & accessories, |
| was coal, coke & petroleum, which account for | | | | footwear as well as telecom equipment. |
| approximately 25% of total exports. Other key | | | | Besides being a significant trading partner to Australia, |
| exports include metal ores, minerals & metals, | | | | China is also increasingly becoming an important |
| machinery and gold. Conversely, Australia is a heavy | | | | investor in Australia. According to the Statistics of |
| importer of manufactured goods such as machinery, | | | | Bureau of Australia, Chinese investment in Australia |
| consumer goods, transport equipment, as well as fuel | | | | exceeds US$4.8 B, contributing in no mean measure |
| & lubricants. | | | | to Australian exports and jobs. Similarly, Australia has |
| The top export markets of Australia include Japan, | | | | also become a major destination for China's outward |
| China, Korea, USA, New Zealand and the ASEAN | | | | investment. |
| countries. Japan has been Australia’s largest | | | | By far, the resource and mining sector has received |
| export market since the mid-1960s. At its peak, | | | | the lion's share of the investment from China. Major |
| Japan account for over 60% of Australia’s | | | | projects in this sector include Mount Channar iron-ore |
| exports. However, in the aftermath of the Asian | | | | (US$96 M) and Portland Aluminum Smelter (US$80 M). |
| economic crisis of the late 1990s and the long period | | | | The single largest Chinese investment in Australia, |
| of sluggish growth in Japan, this share has fallen | | | | amounting to US$240 M, is in the mining sector. |
| significantly over the years, accounting for | | | | Currently, Chinese companies are studying in more |
| approximately a fifth of Australia’s exports in | | | | than 15 minerals and energy projects in Australia |
| 2006. In terms of imports, USA, China, Japan, | | | | worth more than US$80 B. About half of the |
| Germany, Singapore and the UK are some of the top | | | | projects are in iron ore, the rest in coal, natural gas |
| import market for Australia. | | | | and non-ferrous metals. |
| The China phenomenon | | | | Agriculture is another area of concentration of the |
| There is a very significant phenomenon in the trade | | | | Chinese investment. Over the years, Chinese |
| between Australia and China. Over the past five | | | | companies have made substantial investment in dairy, |
| years, China has grown significantly in importance to | | | | cattle and cotton farming in Australia. However, it is |
| Australia as a trading partner, accounting for nearly | | | | the service sector that has attracted the largest |
| 12% of Australia’s merchandise exports in 2006 | | | | number of companies from China. Quite a number of |
| (up from 5.5% as recently as 2000). Its growth has | | | | Chinese companies are engaged in import and export |
| also been rapid, growing at a CAGR of 23% | | | | business, and air and ocean transportation as well as |
| between 2000 to 2006. Key exports to China include | | | | financial services, playing an important role in |
| metal ores & scrap, textile fibres, non-ferrous metals | | | | increasing the flow of goods and services between |
| as well as coal and petroleum products. | | | | China and Australia. |