Australian companies in China optimistic on growth: survey

Source:Global Times Published: 2018/3/15 21:58:40

Australian companies have a strongly optimistic view about doing business in China despite the ongoing challenges, according to the latest survey released Thursday by the China-Australia Chamber of Commerce (AustCham) and the Australian China Business Council (ACBC) Victoria.

More than 90 percent of respondents consider positive bilateral relations as important to their business growth in China, the survey showed.

A large majority of Australian enterprises have experienced significant growth of revenues and profits during the past two years in China, Australia's largest trading partner, said the survey.

Bilateral trade was worth $129 billion in 2017, accounting for nearly 28 percent of Australia's overall foreign trade and a record high. The total was up16 percent year-on-year, according to the Australian Bureau of Statistics, Xinhua News Agency reported in February.

Coal and iron ore exports to China have been the prime drivers in the past, while recently agricultural business and liquefied natural gas are making contributions.

According to the survey, over two-thirds of respondents think the 2015 China-Australia Free Trade Agreement is having a positive impact on Australian businesses in China.

Approximately 40 percent of companies have seen increased exports from Australia with the agreement while 45 percent have experienced a positive impact on direct investment into China and facilitating new business opportunities.

In 2017, about 65 percent of the surveyed companies increased their investments in China and that figure is expected to rise, with 80 percent of Australian companies having plans for further investments into their China operations this year, it said.

On the other hand, China's business climate remains challenging with more than two-thirds of Australian companies finding that doing business is either "somewhat" or "extremely" difficult.

Posted in: ECONOMY

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