China market overview

China is Queensland’s largest trading partner and an increasingly important investor in the state.

Economy

Predicted to become the world’s largest economy in the near future, China’s growing middle class and proximity to Queensland offer significant opportunities for Queensland companies.

Trade

The China–Australia Free Trade Agreement (ChAFTA) enables Queensland businesses to benefit from agreed tariff reductions when exporting products to China, including:

• agricultural products and processed food
• resources
• engineering goods and services
• manufactured products.

Investment

The implementation of the China–Australia Free Trade Agreement (ChAFTA) is stimulating Chinese investment in a number of strategic industries, including agribusiness, health care, and the high-tech and renewable energy sector.

China is shifting its economic model from ‘quantity growth’ to ‘quality development’ and Chinese companies are increasingly investing in sectors beyond resource extraction.

Combined with the continuing growth in personal incomes and the number of educated people, this will see China’s services sector become increasingly important, creating opportunities in:

• healthcare
• niche food products
• technology
• renewable energy.

With a focus on food security and internationalisation, China’s expected US$1.25 trillion in outward direct investment over the next decade makes it a target for investment attraction across a range of sectors.¹

¹KPMG Global China Practice.