Since the governmental reforms and the economic reforms that Australia underwent in order to make their country more relevant in global trade, China and Australia have maintained strong trade relations. Since 2008, Australia has more than doubled its trade with China. This is due to less strict trade regulations, lower taxes on exports, and a less conservative economy. Once these reforms were made, Australia transformed from a independent, isolated and small economy to a more internationally competitive economy with a more export oriented background.
The trade with China has helped Australia escape the global economic crisis of late. China has strong demand for iron ore, coal and liquefied natural gas, and this allows Australia to be a major factor in the acquisition of these resources. On the other side, China is a major provider to Australia of clothing, telecommunications equipment and components, computers, toys, prams sporting equipment. Each country has become more accommodating to travel and more and more direct flights have become available to and from both locations.
In order to keep a strong economy in this down global economic time, countries are looking to find reliable consistent trade partners and for Australia, this is a perfect opportunity to continue rising back to prosperity. Both China and Australia have become much more profitable due to the partnership, and in the future we can likely be sure that these countries will continue trading in large amounts. How do you think these countries will be able to keep building their international business relations, and do you think they will still be this good of partners in five years?