Official opening of the Austrade office

Chengdu, China

Speech, check against delivery

15 March 2011

Distinguished Guests, Ladies and Gentlemen,

I am pleased to be here today to officially open Austrade’s Chengdu office.

This is my first visit to China in my role to support and promote trade and investment in Australia and it has provided me with an opportunity to get a greater sense of Australia’s ties with this large and growing economy.

It has allowed me to gain a greater appreciation than what can be gained from examining a series of statistics.

The centre of global and strategic economic weight is shifting to Asia.

The rise of the Asia-Pacific will define our times.

The Australian Government’s guiding principle is that the prosperity that the growth of China and the growth the region brings can be shared.

The global economy is not a zero sum game.

In Australia, it is easy to gain the mistaken impression that Australia’s trade with China is only about iron ore exports and other mineral resources.

But coming to Chengdu leaves no doubt that, although incredibly important, our commercial relationship goes well beyond the minerals and energy sectors.

In Chengdu and more broadly in Sichuan Province, Australian firms are forging complex trade and investment ties with Chinese firms.

In 2009, two-way trade between Australia and Sichuan reached A$459 million.

Australian companies in biotechnology, green building and clean technology machinery, financial services, architectural design and automotive parts and components have established a presence in Sichuan Province.

Australian universities are developing close relationships with Sichuan’s major educational institutions, and there are regular exchanges of students and academics.

Two-way investment between Sichuan Province and Australia is also on the rise.

One Sichuan company, Hanlong, has acquired a controlling stake in Australia’s Moly Mine project, worth an estimated US$200 million.

Australian firms have invested A$331 million in Sichuan, mainly in Chengdu’s building materials, clean technologies, food and beverage industry, and financial services.

Of course it makes sense that Australian companies have come to Chengdu and Sichuan Province to do business.

My point is that in Sichuan province, with its population of 88 million - four times the population of Australia - we glimpse the future of Australia’s trading and investment relationship with China.

It is --and will be --one based on trade in a whole range of goods and services, with educational services and cultural ties continuing to play a crucial part in the relationship.

Austrade, the Australian Government’s trade and investment promotion arm, plays an important role in helping businesses find markets and sound investments in China.

I mentioned in a speech in Beijing yesterday that a central element of Austrade’s strategic approach in China is to focus on a range of specific sectors which match Australian capability.

And as I discovered at a breakfast this morning with a group of Australian business people, Austrade’s network plays a significant role in China, so it is worth taking a moment to emphasise its importance.

Over the coming years, your efforts through this office and other Austrade offices currently in China, will help take Australia’s trade and investment relationship with China to the next stage and beyond.

The Government appreciates, and I appreciate, the hard work that you do in promoting Australia’s trade and investment potential and it is a privilege to declare Austrade’s Chengdu office officially open.

Thank you.

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