China is Australia’s largest trading partner with two-way trade valued at $A214.6 billion in 2018. China remained Australia’s largest two-way trading partner, export market and import source.

Twenty-five per cent of Australia’s manufactured imports come from China;

13% of its exports are thermal coal to China.

A two-way investment relationship is also developing.

As China moves into its next phase of development, its demand will shift from raw materials to elaborately transformed manufactures, services, and expertise. Australia has some potential advantages in the supply of these, but they are not the clear advantages possessed by the resources sector.

Few other countries had Australia’s huge supplies of iron ore, which were close to the sea and easily developed, and proximity to China for shipping minerals (of which transport costs are up to 10% of the value).

But many developed countries have the education and technical expertise to meet China’s new demands.