1. Opportunities and Emerging Trends In China Speech at China Lunch Room Business Enterprise Centre Liu Xin Vice Consul Economic & Commercial Consulate-General of the People’s Republic of China in Sydney 14th March, 2008

2. content I. China’s Economic Overview II. China-Australia Economic and Trade Relations III. Opportunities And Tips For Doing Biz in China IV. A brief introduction to CCCA

3. I. China’s Economic Overview Remarkable growth since reform & opening up in 1978 Average annual growth rate over 9.6% 1978-2007 Closed economy to a socialist market economy

4.  People’s living standard improved 400 million out of poverty in past 29 years Per capital consumption of urban and rural population increased over 4 times Poor rural population dropped to 20 million from 250 million

5. 2007 Economic statistics  GDP 24.7 trillion RMB/3.2 trillion USD 11.4% Grain production 501.5 million tons Industrial added value 18.5% growth Fixed asset investment 1.8 trillion USD Retail sales of Consumer goods 1.1 trillion USD Import & Export 2.17 trillion USD Paid-in FDI 74.8 billion USD Foreign exchange reserve 1.53 trillion USD

6.  China is a large and growing market  World largest population: 1.3billion  10 million more people with medium level consuming capacity each year  GDP projected reaches 4 trillion USD

7. CChina’s foreign trade in 2007 Total 2174 billion USD 23.5% Export 1218 billion USD 25.7% Import 956 billion USD 20.8% Surplus 262 billion USD 48%

8. II. China-Australia Economic and Trade Relations  Strengthened and enhanced through bilateral high level visit  Two way trade expanded with the signing of Trade and Economic Framework Agreement and launching of FTA talks (10 rounds have concluded)

9.  Bilateral trade volume double digital growth in recent years (Billion USD)  2002 10.4 16%  2003 13.5 30%  2004 20.4 50%  2005 27.3 34%  2006 32.9 21%  2007 43.8 33%

10.  China-Australia trade 2007 (Billion USD) Total43.833.1% Export17.932.1% Import25.933.8%

11.  Australia is China ’ s 9th largest trading partner 2007 (Billion USD) China ’ s top 10 trading partners EconomyTotalPer Cent change % EU356.127.0 US302.115.0 Japan236.013.9 The ASEAN202.525.9 Hong Kong SAR197.318.8 South Korea159.919.1 Taiwan, China124.515.4 Russia48.244.3 Australia43.833.1 India38.655.5

12.  Australia is China ’ s 7th largest source of imports 2007 (Billion USD) China ’ s top ten sources of imports EconomyTotalPercent Change % Japan133.915.8 EU110.922.4 The ASEAN108.421.0 South Korea103.815.6 Taiwan, China101.016.0 US69.417.2 Australia25.933.8 Russia19.712.1 Brazil18.342.0 Saudi Arabia17.616.4

13.  Australia is strong in upstream resources and downstream high-tech industries with relative small scale of processing and manufacturing in the middle  China is known for its decent scale of processing and manufacturing, rich labor resources and the corresponding international competitiveness. China and Australia are highly complementary economically: engaging gear effect China and Australia are highly complementary economically: engaging gear effect

14. III. Opportunities and Tips for Doing Business in China  China’s WTO accession has brought huge trade/investment opportunities for the world  Average tariff rate reduced from15.3% to 9.8% 2001-2007  Non-tariff measures phased out ： import quota & license  100 service sectors opened  Pascal Lamy: “A-plus for China’s performance”  Barshefsky: “Remarkable progress in opening and welcoming imports and FDI”

15.  China is continuing to adhere to its opening up policy and welcome foreign investment.  China is stimulating its domestic demand and increasing imports from the world.  China-Australia Free trade Agreement will bring more opportunities for trade and investment between the two countries.

16.  Tips for doing business in China  Vision for long-term benefits  Understand local condition to develop strategy  Build business network with reliable partners

17.  Golden opportunities for business in China  Act immediately

18. IV. A Brief introduction to CCCA China Chamber of Commerce in Australia  Established on April 3, 2006 representing 105 Chinese investment companies across Australia, mainly from N.S.W, Victoria, Queensland and Western Australia dealing with resources & mining, shipping & logistics, banking & financial services, aviation, telecommunication, electronics and consumer goods manufacturing, healthcare, tourism and trading.  Head office in Sydney  Three branches in Melbourne, Perth, and Brisbane

19. CCCA mission and objectives  Raising Chinese companies ’ image in Australia and enhancing cooperation with main Australian business community  Providing quality service to member companies, protecting their rights and interest, promoting China-Australia economic and trade relations, enhancing communication among its members  Expanding both internal and external business opportunities, strengthening and developing cooperation with Australian business associations and councils  Serving as a bridge of understanding and friendship between China and Australia and strengthening their business ties

20. Want to know more about CCCA? contact  Ms. Helen He Secretary China Chamber of Commerce in Australia L3, 39-41 York Street Sydney 2000 Tel: (02) 8235 5922  Fax: (02) 9262 1084  Email: heling@chinachamber.org.au

21. More helpful resources for doing biz in China on the following websites  http://www.mofcom.gov.cnwww.mofcom.gov.cn  http://www.ccpit.org.cn http://www.ccpit.org.cn  http://www.fdi.gov.cn http://www.fdi.gov.cn  http://wmfzj.mofcom.gov.cn/ http://wmfzj.mofcom.gov.cn/

22. Thank You! By Liu Xin Vice Consul Economic & Commercial Consulate-General of the People ’ s Republic of China in Sydney 68 George Street, Redfern NSW 2016 Tel: 02-96984498 Fax:02-98987373 E-mail: liuxin@chinatrade.org.au