Australia has opportunities despite China's economic slowdown

Australia will still enjoy opportunities and benefits in its business relationships with China despite new economic figures released on Tuesday.

They indicated China's growth for 2014 would 7 percent, the lowest since 1990.

China said on Tuesday morning its economic growth slowed down to 7.4 percent in 2014.

Economists have previously said China's double digit growth period was unsustainable, but the single figure of growth was still healthy, with Australian observers remaining positive.

Australian analysts said China remained the country's most valuable and number one trade partner, and predicted a continuing healthy trading future.

Laurie Pearcey, director of the China Strategy and Development at the University of New South Wales (UNSW), said the predicted 7 percent growth figure for 2014 was not surprising.

"There's no doubt in anyone's mind that the Chinese economy is slowing down," he told News Corporation.

"Although the Chinese economy's growth was down, Australian trade to China grew by billions. The 7 percent GDP growth of the world's second largest economy is still remarkable, and it's fundamentally a good thing for the Australian business community and our export income. We have to keep those fundamentals in mind.

"What's important is that Australian businesses keep their wits about them," he added.

Dr Jane Qiu, a senior lecturer at the UNSW Business School, said current Chinese government policies were aimed at growing wealth for the middle class which created opportunities for Australia.

Apart from Australian exports of the mining commodities sector, other Australian companies had an opportunity to market retail products to a large Chinese middle class armed with more disposable income.

"In a large number of industries, the growth rate is very impressive," Dr Qiu told News Corporation.

"There are many opportunities for retail. There is a lot of economic energy in this area. I have MBA (Master of Business Administration) students in my class who work for Australian retailers, and many of them are looking into how they can crack this market."

For example, a lavender farm in the small island state of Tasmania has found a sellout market among Chinese tourists and online sales for a teddy bear stuffed with lavender and wheat, which doubles as a heat pack.

The farm now produces 40,000 bears a year from none in 2009, and most go to Chinese sales.

"We have to look at the Australian economy as a portfolio -- we have to look at what other items we have in this portfolio that matches the growth and restructure of the Chinese economy," Dr Qiu said.

Pearcey agreed, saying, "We'll see a diversification of the Australia-China relationship away from one that was dependent on natural resources as we wean ourselves off the mining boom."