Australia and China Tade Essay Example for Free

Australia and mainland China Tade EssayChina is a country located in East Asia. It is the worlds most populous country, with a population of over 1.35 meg. China is the fourth largest country in the world behind Russia, Canada, and the United States.Australia is a continent and a country in the Southern Hemisphere, imposition to the south of Southeast Asia, which divides the Indian and South Pacific Oceans. The population of Australia is 23 million.In 2009 China surpassed lacquer to become Australias largest export market, the Australian and Chinese economies are strongly complementary. As a result, our flip-flop and investment relationship is substantial and has developed well beyond its modest beginnings in the 1970s. According to Australian statistics, nonpartizan merchandise commerce has grown from $113 million in 1973, just after the establishment of diplomatic relations, to $78.2 billion in 2009. China is Australias largest merchandise partner, with total trade (go ods and services) in 2009 valued at $85.1 billion, an increase of 15.1 per centime over the previous year. Government and/or NGO RolesThe Australian Government established the Australia-China Council (ACC) in 1978 to set up mutual understanding and value people-to-people relations amongst Australia and China. The Chairperson is appointed by the Executive Council on the recommendation of the Minister for Foreign Affairs, who also appoints the Board members. The function of the Council is to make recommendations to the Australian Government finished the Minister for Foreign Affairs on strengthening the Australia-China relationship in ways that support Australias unlike and trade policy interests.The Australia China Business Council (ACBC) is a membership-based, non-profit, non-governmental organisation comprising of a National Office, six Branches, and more than than 1500 representatives from over 700 Australian companies who do business with China. Founded in 1973, ACBC active ly sanctions two-way trade and investment, and economic cooperation and understanding, between the business communities of Australia and China.ACBC plays an influential role as an advisor to the Australian Government on commercial relations with China. They are a strong supporter of the Free Trade Agreement between Australia and China to foster more competitive business in some(prenominal) nations.Founded in Beijing in 1996, The China-Australia bedchamber of Commerces (AustCham Beijing) overthrow goal is to advance Australian Business in China. It functions to provide members with the information, resources and contacts they need to succeed in China. The Chamber maintains a good working relationship with the Australian Embassy and with the various Australian government departments in China. AustCham is a non-profit organization, which operates independently from government. It is funded entirely by their membership and Chamber activities. Together with their sister AustChams in Hong Kong, Shanghai, and Guangzhou, they work to promote strong trade and investment links between Australia and China.Treaties and Agreements- formal and/or informalOn the eighteenth of April 2005, Australia and China agreed to commence negotiations on a Free Trade Agreement (FTA) following consideration of a joint FTA Feasibility Study. The study was completed in March 2005, and concluded that there would be signifi bedt economic benefits for both Australia and China through the negotiation of an FTA.From April 2013, WESTPAC and ANZ banks will at present be the starting time to directly trade Australian dollars into Chinese Yuan. Due to this fact, deepening of relationships between China and Australia, it signals deepening of trade connections and great opportunities for future growth.Advantages and Disadvantages to Australia of this linkAdvantagesEmployment will increase in exporting industries and workers will bedisplaced as import competing industries fold (close down) in th e competitive environment. With free trade many jobs have been created in Australia, especially in manufacturing and service industriesConsumers benefit in the domestic economy as they can now obtain a greater variety of goods and services. The increased competitions ensure goods and services, are supplied at the lowest prices. DisadvantagesThis can impact upon large numbers of workers, their families and local economies. Often it can be difficult for workers to find consumption in growth industries and government assistance is necessary. This means that businesses, employees and consumers are more vulnerable to downturns in the economies of our trading partners. Future Direction of linkAustralia and China share a strong and rapidly growing trade and economic relationship. Further strengthening and deepening this relationship is a major priority for both countries, with both governments committed to sustaining the impressive trade and investment performance achieved in the past two decades. In that time, China has become Australias largest two-way trading partner and vital to Australias future economic prosperity.