China and Australia work together to maintain the stability and smoothness of the industrial and supply chains

China is Australia's largest trading partner, with imports and exports accounting for nearly one-third of Australia's international trade share. In the past few years, the trade and investment flows between China and Australia have been affected due to the interference of the COVID-19 epidemic and geopolitical factors. "Despite facing numerous challenges, the complementarity between the economies of the two countries is strong, which is the foundation of their economic interaction. Recently, David Olsson, Chairman of the Australia China Business Council (hereinafter referred to as the" Australia China Business Council "), stated in an interview with China Trade News that Australia and China have great potential in maintaining stable and smooth global industrial and supply chains.".


In Shen Wen's view, the relationship between Australia and China is stable and full of vitality. "The cooperation between the two countries in various fields such as economy, trade, culture, and social exchanges is becoming increasingly mature, which is greatly beneficial for both Australia and China." He said that the resumption of normalized and high-level dialogue between Australia and China will explore more potential for the development of bilateral economic and trade relations in the next stage.

Shen Wen stated that recently, the two countries proposed to reconsider and expand the China Australia Free Trade Agreement, further explore the potential for cooperation under the Regional Comprehensive Economic Partnership (RCEP) framework, and focus on new areas of cooperation such as addressing climate change and green economy initiatives. He mentioned that there will be many chapters and provisions that need to be re approved during the upgrading process of the Free Trade Agreement and the Regional Comprehensive Economic Partnership Agreement. He believes that after the upgrade of the agreement is completed, there will be more space for cooperation between the two countries. "A stable cooperative relationship between Australia and China can not only maintain stability in the Asia Pacific region and promote economic growth, but also better address global challenges such as climate change."

Shen Wen believes that with the expansion of China's middle-income group, the demand for high-quality consumer goods, agricultural products, health products and services, environmental protection and green technology services, financial services, education, and tourism has increased, bringing business opportunities to Australian enterprises. "China continuously promotes technological innovation in multiple fields such as new energy, renewable energy, financial technology, and intelligent manufacturing, providing opportunities for both sides to innovate cooperation forms, achieve supply chain innovation, and create new value." Shen Wen said.

In Shen Wen's view, there are more prominent opportunities for cooperation between Australia and China in areas such as climate change and green economy. "Consumer goods, energy, agriculture, tourism, and education will undoubtedly continue to support Australia's exports and investments in China in the coming decades, but the shared vision of accelerating energy transformation between the two countries can promote the expansion of more areas of cooperation."

The scale of industrial transformation undertaken by various countries to address climate change is enormous, and China is particularly prominent. Shen Wen believes that China's determination and actions to achieve green transformation are beyond doubt. "The whole world is closely cooperating with China, which has also accelerated China's transition to a green economy. I believe that deepening cooperation with China in the competition towards a zero carbon world will help all cooperating countries, including Australia, benefit from it."

Supply chain cooperation has always been a focus of cooperation between China and Australia. Shen Wen believes that the trade interruption caused by the COVID-19 exposes the vulnerability of the global supply chain, especially in the case of high concentration of supply of key products, high dependence on a single economy or region, and the impact of geopolitical tensions, the supply chain problem becomes more serious.

Shen Wen mentioned that governments and businesses in the Asia Pacific region are re examining the flow of cross-border goods and services and making targeted adjustments. But he also emphasized, "The pandemic has not shaken the consensus that international trade and investment remain the cornerstone of global economic stability. Due to the highly complementary economies of Australia and China, and their high emphasis on international trade to promote economic growth, this further indicates the need for the two countries to strengthen cooperation in the economic and trade fields, reduce uncertainty in regional supply chains, and provide more effective support for regional economic recovery."

Shen Wen believes that the Asia Pacific region remains a bright spot for global economic growth. "By deepening cooperation, China and Australia can work together to better solve supply chain problems and further promote regional economic growth."

In terms of innovation cooperation, Shen Wen is very optimistic about the cooperation between the two sides in the fields of digital economy and green economy, believing that it can provide more opportunities for enterprise development. "The digital environment is also fundamentally changing the way global supply chains operate, which is also a necessary path for Australia's economic development. With the rise of digital protectionism in the United States and Europe, Australia and China have the opportunity to cooperate and find a path to smooth communication and achieve regional prosperity. Discussions on technology investment will undoubtedly become an important part of international relations, as the development of security and compatibility standards requires strengthening global cooperation." Shen Wen said.

In addition, Shen Wen noticed that China has made remarkable achievements in developing new clean energy supply chains, and this successful model can also be promoted to Australia. "China's strength in green technology, coupled with Australia's renewable energy potential supported by energy and resource trade, can create more successful partnerships."

At the invitation of the Australia China Business Council, Ren Hongbin, President of the China Council for the Promotion of International Trade, went to Australia to attend the China Australia Business Forum and the 2nd China International Supply Chain Promotion Expo Australia Roadshow, and had in-depth talks with the Australian business community.

Regarding this, Shen Wen stated that the Australia China Business Council and the China Council for the Promotion of International Trade have been closely cooperating for a long time. This visit once again provides an opportunity to deepen cooperation. "The business community plays a crucial role in promoting economic development. I hope to provide assistance to Australian and Chinese enterprises in expanding new paths of cooperation and addressing uncertainty issues through joint efforts."

Shen Wen stated that China may still be Australia's largest trading partner in the future, emphasizing that "Australian companies are still committed to the Chinese market. The stability of bilateral relations provides an opportunity to reconfirm this commitment. The Australian business community is grateful for the efforts made by the Chinese government to encourage foreign investment and support foreign enterprises."

He further explained that many senior executives in Australian companies believe that China is an important component of their long-term international strategy, but there is still some uncertainty in the short term. He made it clear that China remains a key market and partner. From the perspective of the Australia China Business Council, they recommend member companies to truly visit China, engage in face-to-face communication, invest time in understanding China, clarify their own competitive advantages, and consider ways to communicate with customers. By establishing sound processes and anticipating policy changes in advance, companies will be able to better predict and manage risks and cultivate the ability to discover new business opportunities.