The Chinese market and its massive growth rate is too big to ignore for most Australian exporters.
The following markets are just a few examples of the opportunities that are expected to arise over the next few years:
Safety and Security
China's safety and security market demand is growing rapidly. The market has expanded from its traditional base in the financial, insurance, custom, police, airport and IT sectors to the construction, transportation, and education fields. In 2003, the Chinese safety and security equipment market was US$7 billion. Industry experts estimate that by 2020 China's safety and security market will reach US$30 billion. From September 11, 2001 through 2004, the Chinese government has invested US$130 million to cope with anti-terrorism security issues, many involving air travel.
Automotive Components Market
China's goal to develop its automotive industry into a key industry of the national economy by 2010 is quickly coming to fruition. It is now the third largest automotive market in the world, trailing only the United States and Europe. China now has 6,322 automotive enterprises, which are scattered in five sectors: motor vehicle manufacturing, vehicle refitting, motorcycle production, auto engine production, and auto parts manufacturing. This includes approximately 100 OEMs, with 40 producing passenger vehicles, and over 4000 auto parts/accessories companies. All tiers of the industry are being driven by the booming sales of the OEM sector. Nearly 80% of the revenue for the auto parts and accessories market is through new vehicle sales.
The main goals for automotive components, parts, and accessories manufacturers are to improve technology and quality and to develop design capability. Most of the domestic automotive parts manufacturers' R&D capabilities are limited due to the small scale of their operations and a shortage of capital as compared to international companies. In the next five years, the Chinese Government will continue to encourage foreign investment in automotive component development and manufacturing. In the meantime, there is a growing market for imports and Western products are generally highly regarded by Chinese customers.
Building and Construction Market
The success of Australian architect and property developers provides great opportunities for Australian producers of building products and construction equipment.
The size of the construction equipment market is estimated to be about US$18 billion with about US$4 billion in imports. There are a number of significant projects planned around China in the next few years.
Ai Group's assistance into China
For more information on the opportunities in your sector, email the Ai Group team
Ai Group regularly takes trade missions to and hosts trade missions from China. Register for updates by emailing us.
Visiting the Market for China
Our position on the Australia – China FTA
China and Market Economy Status
Australia China FTA Submission, 16 July 2004
China Survey -
Australia-China Framework Agreement
Ministry of Commerce of the People's Republic of China
China Council for Promotion of International Trade CCPIT
The Australian China Business Council
Connsulate-General of the People's Republic of China in Sydney
Embassy of the People's Republic of China
Chinese Machinery Industry Federation
China Electrical Equipment Industrial Association
China National Textile & Apparel Council
China National Light Industry Council
China Petroleum & Chemical Industry Association