The Australia-China free trade agreement is great news for the Queensland economy, with scheduled reductions in Chinese tariffs on coal and agricultural products from Australia. It will also provide opportunities for people in professional and financial services (see Max Mason’s handy analysis Who wins in Australia-China free trade agreement?)
A nice discussion of how to take advantage of opportunities in China is contained in Airport Economist Tim Harcourt’s latest book Trading Places. It appears Tim was in Adelaide only a few days before I was last week and managed to sign a few copies of his book at Adelaide Airport, one of which I picked up to read on the flight back to Brisbane. My favourite bit of advice in Tim’s book is this:
Try the second-tier cities – Chengdu, Wuhan, Chongqing, etc. Really it’s not a matter of if you’re not in Shanghai, you’re camping out.
That’s very true. I recall that one of the facts Dr Parkinson used to stun us with when he was Executive Director of Treasury’s Macroeconomic Group was that there were over 100 cities in China with more than one million people. There are certainly huge opportunities over there for Australian businesses.