Australia's Treasurer on the China Connection
	Australia's Treasurer, Wayne Swan, has spoken at length about Australia's economic relationship with China for the first time since Labour took office in December 2007. Addressing a luncheon given in his honour by the Australia China Business Council in Victoria on Friday, 4 July, he told over 200 members of the Victorian business community that China's extraordinary growth offered Australia magnificent opportunities. "So big has China's economy become and so rapid has been its expansion, that over the past five years China's growth has accounted for nearly one quarter of the total growth in global output," the Treasurer said. Wayne Swan said that in his view, China's expansion would continue for decades, and prices for Australia's key commodities would remain high for some considerable time to come. Treasurer Wayne Swan "Whilst our biggest exports to China are iron ore, wool, other minerals and natural gas, Australia's economic engagement with China is not only about commodities." "Last year we exported nearly $1.4 billion in elaborately transformed manufactures to China, representing a sixteen per cent increase on the previous year." Turning to the services sector, Australia's Treasurer said the volume of Australia's education exports had increased at four times the rate of growth of manufactured exports, and five times the rate of growth of resource exports. "Australia's teachers now contribute as much to our exports as meat, wheat and wool put together." Wayne Swan expressed satisfaction over the fact that negotiations on a China Free Trade Agreement had resumed once more. He said a new feature of the negotiations was the discussion of possible early outcomes as a way of building confidence on both the Australian and Chinese sides. "Another cause for satisfaction during my visit to Beijing in June, was the announcement by the China Banking Regulatory Commission that Australia had become an approved investment destination under the Qualified Domestic Institutional Investor Scheme." "This will enable investment in Australia by Chinese banks." Wayne Swan said. Australia's Treasurer said the investment in Australia by other Chinese organizations had grown significantly in recent years. "In the fiscal years 2005/2006 and 2006/2007 combined, Australia approved less than $10 billion in proposed investment from mainland China." "Since the election, the value of applications for proposed investment from mainland China has almost reached $30 billion." Wayne Swan denied the consideration and approval of Chinese investment applications had slowed. "I have approved a Chinese investment proposal on average once every nine days since coming into office." "Whilst it is certainly true that some Chinese proposals have needed a more detailed examination, approval timelines have been very reasonable," Wayne Swan said The Treasurer said Australia's national interest was carefully considered when investment applications were being processed. In addition, particular attention was given to applications where the proposed investor in an Australian resource was also the buyer of that resource or linked with the buyer of that resource. [L-R] Robin Chambers, Consul-General Liang Shugen & ACBC Victorian Branch President Lyall Howard Click Here to download complete text of Treasurer's Speech Australia China Business Council Melbourne 7 July 2008