China is Queensland’s largest trading partner and an increasingly important investor in the state.
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.
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
- engineering goods and services
- manufactured products.
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:
- niche food products
- 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.
- Food and agribusiness
- Education and VET
- Direct investment for agribusiness, health care and renewable energy
- Lifestyle products (food and services)
- Aged care and health care
- Renewable energy
- Resources and energy
- Research and development collaboration
- Incubator and creative technology
- Smart cities
- Advanced manufacturing