Austrade Reception Dinner

Shangri-La Hotel, Guangzhou, China

Speech

4 August 2011

Good evening.

It's wonderful to be in Guangzhou today, particularly with businesspeople who are so enthusiastic about doing business in China.

Can I acknowledge my minister Kevin Rudd who conceived of this delegation and I know was bitterly disappointed he has not been able to attend.

This province is a powerhouse.

Guangdong is a key part of the Chinese renaissance currently underway – one of the wealthiest and most economically-driven provinces in modern China.

It produces almost 30 per cent of China's total exports, with great strength in tertiary and secondary industries: IT, medical, cars, petroleum and chemistry – the list goes on.

In recent years, the province has punched above its weight, even compared with China's overall strong growth.

Last year provincial growth jumped to an extraordinary 12.2 per cent, building on the 11-12 per cent growth in previous years.

The people here are famous for being driven self-starters, innovative and happy to take on challenges.

Of course these are figures that you can read but as a first time visitor to China no amount of literature prepares you for the wonder of this place and particularly its built environment.

We visited the Canton Tower this morning: … what an utterly amazing structure. Its lines, its form and its amazing colour create a completely different aesthetic which seems to define modernity in the 21st Century.

But what struck me is that this building along with the Guangzhou Opera House, and the Children's Palace seem to be playing by a new set of rules when it comes to structure and form.

And this seems to be emblematic of modern China. What is occurring here in the economic transformation of this country in such a short space of time is extending the bounds of the human experience. New waters are being chartered.

… And I reckon that plays right into Australia's strengths, because we are by nature an imaginative people full of ingenuity. In speaking with many of you over the last twenty-four hours you can see that in this room in spades. Looking outside the square, finding answers beyond the realms of conformity, charting new waters is what we do … it's what you do.

So it is no surprise when looking at these fantastic buildings to discover that Australians are right in the thick of their design.

Marshall Day Acoustics are responsible for designing the acoustics in the Guangzhou Opera House. John Bilmon from PTW architects in association with CCDI designed the famous Watercube which hosted the swimming at the Beijing Olympics and which adorns the cover of the brochures for this delegation. John, of course, is a part of this delegation and is with us here tonight.

Many of you are architects and architecture is exactly the kind of service that Australia can provide to China in this new era of growth. But be it architecture, environmental remediation or accounting, I am sure that Australian ingenuity is going to place us beautifully to take advantage of this next chapter in China's journey.

Guangdong holds a very special place for Australia.

Many Australians of Chinese heritage come from southern China, from this province in particular and indeed there are now a number of Australians who are living here.

Cantonese is a widely spoken language in the Australian Chinese community. It's one of the richest flavours of our multicultural society.

Thousands of students from Guangdong study in Australia – about 12 per cent of the 150,000 Chinese undertaking education in Australia.

Our people to people links are strong.

Australian firms have known about the importance of Guangdong for a long time – there are over 500 Australian companies registered here.

BlueScope, ANZ, Goodman Fielder: plenty of Australian firms have recognised the opportunities of operating in a can-do place like this.

Indeed earlier this evening, along with Dr Emerson, I had the pleasure of attending the opening ceremony of Nova Deko's new factory here in Guangdong. Nova Deko make kitchen and bathroom furniture and is expanding into sustainable housing materials with this new factory.

So it's great to be beginning our trade mission here today.

I'm proud that we're deepening a bond that's been held between our two countries for many decades.

This trade mission, led by Australian Trade Minister Craig Emerson, is all about strengthening that engagement.

Engagement between our two countries, but also, more particularly, Australia's engagement with some of the most exciting and important cities and provinces over coming decades.

Some of the new centres of Chinese growth.

China is entering a new phase, as its historic transformation takes shape.

World economic gravity is moving inexorably to the East, and China is driving that.

As that shift occurs, China's economic growth model is changing.

Domestic consumption is carrying much more weight.

As China's middle class grows and becomes more affluent, services are becoming increasingly important.

Education, health, tourism, high-value goods and services.

Guangdong is at the forefront of that, with Guangzhou's residents among China's highest earners and spenders.

Guangdong's megacities are already showing their growing clout through their greater economic gravity.

Each year, they attract another strong surge of rural migrants, looking for the better life they know is on offer in these exciting times.

I know this movement presents an immense challenge for China, but it also presents extraordinary opportunities.

As Guangdong's incomes rise, as urbanisation gathers pace here, that's a huge driver for increased demand for services.

Australia has been a reliable provider of critical resources and energy for China for many years.

But as China changes, Australia also offers many of the products and services that will really matter in the next phase.

That's the reason Dr Emerson and I have brought this trade mission to China, and it's why we're starting here in Guangzhou.

Australia is renowned for its high quality resources, but think about this: last year China became Australia's biggest services export market.

Our services trade has seen 15 per cent a year growth over the past five years.

We want to continue to diversify Australia's exports to China, particularly in services.

Australian smarts and know-how – particularly in services industries – can help China grow and modernise.

Modern, complex industries need support from sophisticated services.

New industries bring with them requirements for corporate finance, accounting, legal services, logistics and marketing.

We're here to explore the range of new opportunities for Australian engagement with China in the services sector.

Environmental services. Education and training. Aged care, health and medical services.

In some of these areas, we're building on existing strengths.

In others, there are greenfield opportunities for both sides.

As I said this morning, what is also exciting about these new opportunities for Australian business is that resources we are supplying are human ingenuity and expertise. And that is a resource that can be found on both Australia's West and East Coast. There are many businesses in this room from Melbourne, Sydney and Brisbane, even Geelong, who see the opportunity for prosperity by working in China.

Through its 12th Five Year Plan, the provincial leadership has pointed to conservation and sustainability as two major priorities.

Australia has some real strengths in architecture, design, green tech, and water and waste management – all elements that can play a major role in building sustainability.

This trade mission – Australia-China 2.0 – is about taking our traditional relationship, with all the strengths we know about, and building on it in new ways.

Dr Emerson and I have been glad to see such strong interest from Australian firms, because we think this is a real opportunity for people to see what modern China offers.

We also want to let Chinese decision makers see the sort of business expertise Australia has to offer, beyond our traditional strengths.

So thank you everyone for coming tonight.

I'd like to thank you for taking part in this trade mission, and wish you the greatest success in your future business projects.

I believe one thing very strongly: the best in the Australia-China relationship lies ahead.

Media enquiries