What biz can take from Aus, China step

China is still changing — and views on the economy as a destination for Australian business are as well.

It’s clear the trading relationship between China and Australia has taken a step in a new and exciting direction in the wake of Prime Minister Anthony Albanese’s July visit. And the success of the trip presents valuable lessons for other economies (and businesses) considering the China opportunity themselves.

One of the key highlights of the Albanese-led venture was the eighth Australia-China CEO roundtable, which I was honoured to attend on behalf of ANZ.

As a bank, we’ve been in China for decades, and know the opportunity as well as anyone. So while the event didn’t change my view, I could see other attendees beginning to understand the promise China offers their sectors — like agriculture, education, energy and elsewhere — in real time.

While it is clear global trade has had a challenging 2025, China remains Australia’s top trading partner and will be so for a long time to come. And, while slowing, China continues to be a growing market — ANZ Research expects China to record gross domestic product growth of 5.1 per cent in 2025, and, promisingly, in July upgraded its 2026 growth forecast to 4.8 per cent.

December marks 10 years of the China-Australia free-trade deal. According to the Australian Bureau of Statistics, China was Australia’s top partner for merchandise and trade services exports and imports in 2024, at $A196 billion and 115.6 billion, respectively.

It’s critical for both economies to invest in maintaining and growing this trade. And it starts with the key element the recent trip offered: sitting down and talking to each other.

Frame of mind

Succeeding in China is about engaging partners in the region in a way they respect, and expect. Turning up with the right frame of mind, entering into good-faith discussion, and putting everything on the table is important. From that point, maintaining a consistent dialogue is critical.

This behaviour was on clear display during the CEO roundtable. Representatives were mingling, talking, and swapping cards. They were well on the way to building the deep, trusting relationships you need to succeed in China.

Who is sent as a representative is also important. The fact the July trip was led by the Australian PM himself was no accident. To ensure success of any dialogue, in China, sending the most senior person you have signals that you are taking the relationship seriously.

What was also clear from the discussion was that Australia is important to China, too. The nature of each economy complements the other. Both need what the other has.

Focus

Australia’s abundant resources play a key role in China’s automotive sector, particularly when it comes to electric vehicles. That’s likely to only increase as the sector expands, and demand for hybrid vehicles grows. Gold also remains an area of opportunity.

Education is another critical area of trade between the two economies. In Australia, the sector has been buoyed by the post-pandemic return of international students.

Decarbonisation was a key topic of discussion at the summit, particular the opportunity around green-metal production (metal created via “sustainable, low-carbon methods”, according to the CSIRO). There was also talk of knowledge sharing and exporting expertise in the sustainability space.

Agriculture, a mainstay in the China-Australia relationship, was a big part of the discussion, including precision agriculture, food safety, and access to the Chinese market for certain products.

Tourism rounded out the biggest themes. My sense was there was positive dialogue around all of these themes.

Window

Of course, it’s important to acknowledge that, like all markets, securing trade in China is not a ‘slam dunk’. Like all economies, there are challenges — among them rising disinflation. But China remains a critical part of the global economy — and, given its role in global supply chains, a window to success in the rest of Asia and the world.

ANZ is well positioned to assist businesses eyeing off the opportunity. We were one of the first foreign banks to enter China, and have operations in Shanghai and Beijing that outpace our competitors — whether that be in capital flows, trade finance, FX, or cash management.

It won’t always be easy. Sometimes we will need to agree to disagree, and that was acknowledged by both sides during the trip. The trick is not being swayed by any negative, outside commentary.  The relationship between the two economies is good, and getting better. The opportunity is there, and real.

The engagement at the roundtable marked a meaningful step forward in fostering stronger bilateral ties and deepening mutual understanding between the two economies. The positive dialogue focussed on finding common ground across trade, innovation and sustainability, and will foster future trade opportunities.

The delegation has driven a clear path for Australia businesses looking to expand into China. It’s now up to businesses to take advantage of the opportunity.

Simon Ireland is MD, International at ANZ institutional