Year of the Snake augurs well for Sino-Aussie economic ties(2)

The NSW government, managing the key economy, with Sydney as its capital, is extremely positive about China's economic trajectory and considers the ongoing relationship with China a major priority for the state.

Deputy Premier and Minister for Trade Andrew Stoner told Xinhua that NSW has an ongoing engagement with key Chinese markets, including the establishment of sister states and the signing of Memorandums of Understanding (MOU) and other trade accords.

Stoner said that the NSW government has set up Trade & Investment offices in Guangzhou and Shanghai to further strengthen economic ties between Sydney and the key commercial centers in China.

According to the International Monetary Fund (IMF), in its update to the World Economic Outlook (WEO), the Chinese economy will grow by 8.2 percent this year and 8.5 percent next year.

Stoner said that considering the IMF has predicted a global economic growth of only 3.5 percent this year and 4.1 percent next year, China "indeed is enjoying a very solid growth."

China is already NSW's biggest two-way trading partner and Stoner sees enormous potential for bilateral trade in the future.

"The Chinese government's management of its economy, including its current five-year plan to encourage domestic consumption, develop its services sector and shift to higher value- added manufacturing all bode well for China's financial future," Stoner said.

After 40 years of diplomatic ties, the two countries now enjoy a bilateral trade exceeding 120 billion Australian dollars per year.

While Australia remains a stable and reliable supplier for high- quality, high-volume natural resources, such as iron ore, copper, coal, gas which are needed as China's urbanization trend continues, KPMG sees a new generation of trade ties unfolding in 2013.

"The opportunities for Australia to supply safe, high quality food and agricultural resources (dairy, meat, grains, wine, cotton, wool) are plentiful," Ferguson noted.

"Australia consumes only 40-50 percent of its agricultural produce and should make every effort to ensure that we will be the preferred supplier of food items for China in the long term,"he added.

Stoner said the NSW has strategies in place that can complement China's growth plans.

"Our professional services sector, led by financial and insurance services, our ICT and digital industries, our world leading research and development sectors, education services and our expertise in energy, resources and agribusiness all have much to offer Chinese industry and business," Stoner said.