China News Service Sydney, May 13: Why is Australia China relationship important?

——An exclusive interview with Luo Zhen, an Australian economist and president of the Institute of Australia China Relations at the University of Science and Technology of Sydney

　　 China News Service Reporter Gu Shihong

James Laurensson (Luo Zhen in Chinese), Dean of the Australia China Relations Research Institute at the University of Science and Technology Sydney, is an Australian economist. He has been interested in China's economy since high school. He said that China is Australia's most important trading partner, and the two economies are highly complementary. The two sides need to maintain stable relations to ensure that business ties continue to flourish. Why is Australia China relationship important? Luo Zhen accepted this recently China News Service Exclusive interview of "asking about things".

　　 The interview is summarized as follows:

　　 China News Service Reporter: What seminars on China Australia relations have been held by the Australian China Relations Institute (ACRI for short) since its establishment, and what exchanges and cooperation have been carried out with Chinese think tanks or universities?

　　 Luo Zhen: Since its establishment in 2014, the Institute of Australia China Relations has had a good interaction with Chinese universities and think tanks. We will publish an annual report on the website every year to record these interactions and exchanges. Most of these interactions and exchanges were initiated and promoted by Australian and Chinese scholars themselves, rather than formal institutional arrangements. As an independent academic research institution, ACRI provides information for Australia's exchanges with China through research, analysis and discussion. Our researchers are often consulted to provide advice to officials from both sides. Several senior Australian officials also said that they have learned from the information provided by the Australia China Relations Institute and are willing to participate in the activities of the Australia China Relations Institute of the University of Science and Technology of Sydney.

　　 China News Service Reporter: How do you interpret Chinese modernization? What positive results have been achieved in China Australia economic and trade cooperation since the signing of the China Australia Free Trade Agreement 9 years ago?

　　 Luo Zhen: China's modernization has not only brought benefits to its domestic people, but also benefited Australia and other countries through international links such as trade and investment. Despite some differences between the two countries, two-way trade continues to hit a new record. According to the Australian Bureau of Statistics, from January to November last year alone, the total volume of goods trade between Australia and China reached more than 281.2 billion Australian dollars, an increase of more than 8% year on year. Among them, Australia's exports to China amounted to more than A $184.7 billion, a year-on-year increase of more than 17%, accounting for 35% of Australia's total exports of goods trade. Australia's imports from China amounted to more than 96.5 billion Australian dollars, accounting for 24% of Australia's total imports of goods. At the same time, the investment cooperation between the two countries has made positive progress. According to Chinese statistics, China's investment in Australia has exceeded 100 billion dollars. From January to November last year, Australia invested 410 million dollars in China, up 9% year on year. The elimination of tariffs and other barriers will undoubtedly help enterprises make better use of potential economic complementarities.

We support the multilateral trading system. China buys a lot of Australian primary products, which also stimulates the Australian economy. In all discussions on regional integration, the interests of all parties should be taken into account. Australia hopes that regional integration will not only bring economic prosperity, but also security and stability.

　　 China News Service Reporter: What do you think are the complementarities between China and Australia in economy, trade, education, tourism and other fields?

　　 Luo Zhen: I can't think of any two countries with stronger economic complementarity than Australia and China. China is Australia's largest market for minerals, energy, agriculture, education and tourism. The essence of Australia China economic and trade relations is mutual benefit and win-win results. The economic and trade cooperation between the two countries has made great achievements. In terms of trade in goods, the trade volume between the two countries has increased from 72 million dollars at the beginning of the establishment of diplomatic relations to more than 220 billion dollars in 2022, an increase of about 3000 times. China has become Australia's largest trading partner for more than 10 consecutive years. It is not only Australia's largest export destination, but also the largest source of imports. At the same time, Australia has become China's seventh largest trading partner. In terms of service trade, China has been the largest export destination of Australia's service trade for many years in a row. In 2019, the number of Chinese tourists to Australia reached 1.4 million, and they spent 2.1 billion Australian dollars in Australia; Chinese students in Australia have contributed A $12 billion to the Australian economy.

China has the demand advantage of a super large market, the supply advantage of a complete industrial system, and the talent advantage of a large number of high-quality workers and entrepreneurs. Australia has rich and high-quality mineral resources, world leading characteristic professional technology, highly developed service industry and relatively complete legal protection system. For example, Australia now exports a large amount of spodumene to China, and many of Australia's best-selling electric vehicles are imported from China. In mining, Chinese enterprises have played a crucial role in the rise of Australia's key mineral and rare earth industries. With the vigorous development of China's green economy, the demand for such resources and interest in cooperation with Australia may continue to grow.

　　 China News Service Reporter: How do you comment on the visit of Australian Prime Minister Albanese to China last year? What are the opportunities and challenges facing China Australia relations in the future?

　　 Luo Zhen: Prime Minister Albanese's visit to China last year was very smooth. Both sides are making efforts to stabilize and improve bilateral relations. Although differences still exist, they do not affect the overall relationship between the two countries or the mutually beneficial cooperation in economic and trade fields. How to maintain this cooperative relationship is a challenge for Australia and China. I believe that many benefits of practical cooperation can be realized through professional diplomatic expression and dispute resolution. In bilateral relations, it is also useful to improve the way of communication and dialogue. For this reason, ACRI is trying to provide information for Australia's contact with China through research, analysis and dialogue on the basis of academic rigor, so as to make a difference. (End)

　　 Interviewee Profile:

　　 James Laurensson is the director and professor of the Institute of Australia China Relations at the University of Science and Technology of Sydney. He once worked at the University of Queensland in Australia and Shandong University in China. The academic research was published in mainstream academic journals such as China Economic Review, China Economic Journal, Australian Journal of International Affairs, and published articles in newspapers and magazines such as Australian Financial Review, Australian People's Daily, Sydney Morning Herald, and South China Morning Post.