Easy China
The rise of China as an economic powerhouse has been a fairly substantial contributing factor to Australia’s recent economic prosperity.
This was made very clear in a speech given by Ouyang Cheng, who is currently Second Secretary for economic and commercial affairs of the Chinese Embassy in Australia.
Speaking at the Australian Resources China Investment Congress in Adelaide Cheng told his audience of the importance the symbiotic relationship our two countries currently share is to the well-being of both economies.
“China attached great importance to its economic and trade relations with Australia,” Cheng said in his address.
“With joint efforts, the trade and investment between our two countries were increased at a fast pace in the past years.”
Cheng provided statistics from Chinese Custom’s data that showed bilateral trade exceeded US$88 billion last year comparing it to the US$10 billion in 2002.
In 2010, China exported US$27 billion to Australia and imported US$61 billion from Australia
Last year Australia became China’s 7th largest trade partner, while China has become Australia’s largest trade partner as well as our biggest service export destination.
“I am of the view that currently, China and Australia are at the best time to further promote bilateral economic cooperation,” Cheng continued.
He pointed to visits both countries had received from dignitaries including Australian Prime Minister Julia Gillard and Jia Qinglin Chairman of the National Committee of the Chinese People’s Political Consultative Conference.
Cheng said these visits highlighted the eagerness of both countries to propel China-Australian political and diplomatic reelations.
However, he also politely suggested a few ways we could probably make things a bit easier for his countrymen to do business here.
“We believe that it would be Australia’s benefit if Australia could channel more competition in its market, either from home or abroad,” he said.
Cheng indicated efficient competition would benefit both Australia’s economy and consumers making particular mention that it took nearly 10 years for Chinese apples to enter Australian market.
“Some Chinese enterprises have experienced difficulties during their investment and operation in Australia,” he said.
“Including long period of approval procedure, slow implementation or delay of the projects, localization of the enterprises, different enterprise culture and management patterns, etcetera.”
The recent problems being endured by the Oakajee Port and Rail consortium is probably a good case in point.
THE $6 billion port and rail project in Western Australia hit a major road block when Chinese metals major Sinosteel signalled it is to wind up its $2 billion Weld Range iron ore project.
Sinosteel Midwest Corp stopped all major work at the project. It then laid off 43 workers and closed its office in the mid-west WA town of Geraldton.
Sinosteel’s move was a reaction to cost blowouts and lengthy delays that were being experienced in building the critical infrastructure project.
The way Australia conducts its business, especially in regard to large infrastructure projects where government funding is crucial, is obviously more hamstrung than those of a similar nature in China.
This means Chinese investment does get somewhat impatient with the length of time necessary to clear such hurdles as environmental approval, land rights issues and community consultation.
“We could have strong confidence that our two countries would have more cooperation and enjoy a more prosperous future,” Cheng said.
“However, we shall also realize the challenges and difficulties ahead.
“If these challenges couldn’t be dealt with properly, it would be difficult for China and Australia to maintain a healthy and steady economic cooperation.”
Perhaps any potential Chinese investors could sit down with one of our home-grown philosophers in Collingwood Football Club coach Mick Malthouse.
His famous, “the ox is slow but the earth is patient”, quotation is probably more relevant now than ever.