China is Australia’s largest trading partner, but the nature of that relationship is shifting. Trade between the two economies is evolving from a bulk, commodity‑driven model to one increasingly defined by new technology, the energy transition and China’s demand for critical minerals.
Lachlan Halstead, Country Head ANZ China, said growing demand for critical minerals such as lithium, nickel, cobalt, graphite and rare earths is a key part of the shift.
“Over the past decade, China has drawn on imported critical minerals to transform its energy system, while also scaling up its exports of new energy technologies,” he said. “This has seen China’s renewable energy system reaching an unprecedented scale.”
In 2025, China added more renewable energy capacity than the entire world combined. China is the largest electric vehicle (EV) market in the world, is the largest EV exporter and dominates the entire end-to-end supply chain on batteries.
The International Energy Agency estimates around half of all new renewable energy capacity added worldwide this decade will be in China, including a significant share of offshore wind growth by 2030.
China not only leads renewable deployment, but accounts for more than 80 per cent of global solar manufacturing capacity across the full supply chain.
The economy’s leadership in manufacturing solar panels, EVs, batteries and wind technologies is reshaping regional trade flows, according to Halstead.
“The real value is no longer in supplying raw materials, but in how they’re processed, engineered and turned into products that can support the region’s decarbonisation efforts,” he said.
EV and low-emissions exports surge
One of the most visible transformations is in China’s exports. Recent data highlight the pace of change. In the first four months of 2026, China’s exports of EVs rose by 68.1 per cent, lithium-ion batteries by 43.2 per cent, and solar cells by 31.3 per cent, year on year.
This is backed by strong domestic uptake. In 2025, there were 44 million new energy vehicles (NEV) on Chinese roads, and half of all new cars registered in that time were NEV.
Halstead said trade across the Asia-Pacific region is increasingly linked towards solutions that are more efficient to produce, cheaper to scale and that enhance energy security.
“The growth in cleaner energy exports highlights how physics, economics and geopolitics are reshaping not just volumes, but what is traded,” he said.
“China is exporting not just products, but entire low‑carbon industrial ecosystems — integrating batteries, software and advanced manufacturing at scale.”
Australia is an important destination for these exports, Halstead said.
“Australia is a key market, importing about a quarter of its passenger vehicles from China,” he said. “And with higher oil prices, we expect more people to make the shift towards EVs.”
Data from the Federal Chamber of Automotive Industries showed 46 per cent of all vehicles sold in Australia during May were electrified. And 35 per cent of sales were cars made in China.
“Lower tariffs have also boosted EV uptake, making EVs more accessible to Australians, with battery EV sales more than tripling between 2022 to 2025,” Halstead said.
Riding the boom
The energy transition is also accelerating the digital transformation. Critical minerals are not only essential for batteries, but the semiconductors and data systems that underpin artificial intelligence (AI).
Global semiconductor sales have surged over the last decade. According to the Semiconductor Industry Association, sales have grown from $US339 billion in 2016 to a projected $US1.5 trillion in 2026.
At the same time, China’s imports and exports of integrated circuits and data processing equipment have surged, reflecting rising demand across multiple sectors.
“The region’s semiconductor market has nearly doubled over the past ten years, reflecting rising demand for everything from EVs to AI-enabled systems,” Halstead said.
“This underscores a broader connection between digitalisation and decarbonisation, where semiconductors power both EVs and AI systems — making them a critical link in modern trade flows.”
Shifting relationships
These shifts are reshaping trade relationships across Asia Pacific. Aligning with China’s growth in cleaner energy and technology exports is increasingly central to regional trade strategies.
Halstead said this perspective aligned closely with ANZ’s strategy of “supporting Chinese corporates, particularly those driving growth in renewables, EVs and advanced technologies, positions us at the centre of evolving cross‑border trade and investment flows”.
“Our approach goes beyond facilitating trade,” he said. “The ability to align with cleaner energy and new technology supply chains will be critical to shaping the next decade of regional growth.”
Halstead said regional trade relationships are deepening and diversifying.
“Australia’s growing imports of Chinese vehicles, alongside the rapid uptake of new energy vehicles, shows how the region’s decarbonisation plans are reshaping bilateral trade beyond bulk commodities,” he said.
“Rather than weakening trade ties, recent disruptions to energy markets are accelerating a shift towards more strategic, complementary relationships built around the energy transition.”
The year 2026 marks 40 years of ANZ in China. Since establishing a Representative Office in Beijing in the 1980s, the bank has continued to invest in the market. In 2010, ANZ became the first — and remains the only — Australian bank to be locally incorporated in China. This presence reflects ANZ’s strategy to support the movement of trade and capital for multinational clients around the region, and between its home markets of Australia and New Zealand.
ANZ has been awarded Best Bank – Corporate Banking in Asia, China in the Coalition Greenwich Voice of Client – 2025 Asia Corporate Banking Study for nine consecutive years.
