China’s ban on crypto

In September 2021, the People’s Bank of China (PBOC), along with nine other authorities including the Supreme People’s Court (SPC), Supreme People’s Procuratorate (SPP), the Ministry of Public Security (MPS), and the State Administration of Foreign Exchange (SAFE), jointly announced that cryptocurrency is not legal tender in China. Further, the notice determined that all cryptocurrency transactions in China are illegal, including offshore exchanges to provide services to Chinese citizens. In this pronouncement it was made clear that China-based employees of offshore exchanges, and third parties supporting them by providing marketing and promotion, payment and settlement, technical support or other services, will be investigated and prosecuted.

Court rules Bitcoin as property rights

Nevertheless, on 5 May 2022, the Shanghai High People’s Court issued a statement on their official WeChat channel regarding a civil case involving Bitcoin. In commentary, the court held that Bitcoin has virtual property attributes and is therefore regulated by the legal norms of property rights, sparking a new debate over its legal status in China. While not the first court in China to characterise Bitcoin as virtual property (a previous dispute in 2019 at the Hangzhou Internet Court reached a similar determination), it is worth noting this is the first case involving Bitcoin to reach the level of the Shanghai People’s High Court.

In China, the judicial authority of the Shanghai High People’s Court is second only to the Supreme People’s Court.

Will China move to legalise crypto?

Some observers see the Shanghai High Court’s ruling as indicating an increasing trend to recognise Bitcoin as virtual property which may influence future civil disputes involving cryptocurrency. Others, however, point out that under the sweeping prohibition announced late last year, Bitcoin cannot be considered legalised by identifying it as virtual property.

In China’s civil law system, the law means statutes and excludes case law. In other words, because only rules codified by the legislature, the executive, and the judiciary are laws, and except for “Guiding Cases” (指导性案例) selected by the Supreme People’s Court, rulings from lower courts do not often serve as a precedent. For that reason, it remains to be seen what impact the Shanghai High Court’s determination will have on the status of Bitcoin in China.

Contributor:

Toby Graham

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Australia is a major producer and exporter of natural resources and energy, food and agricultural commodities, education and tourism. We also export many other goods and services globally.

Regardless of what you are exporting, there are several aspects to understand and consider – from trade structuring to the currency in which your trade is denominated, to payment protections employed.

Let’s review some essential background knowledge and then provide some suggested tips.

Capital vs current account

A number of countries globally still have closed capital accounts, but open current accounts. It is important to distinguish the nature of a payment when addressing this issue.

Countries with a closed capital account and an open current account restrict capital payments and receipts (loan repayments, foreign investments, capital injections into a business etc), but allow current account payments such as international trade transactions supported by appropriate documentation. Capital payments and receipts in such countries generally require approval from a foreign exchange regulator.

Currency

Some currencies are restricted to domestic trading only, but remain hedgeable. An example, is the Chinese currency – known on the China mainland as Chinese yuan (CNY) and outside the mainland as CNH – the ‘H’ notionally stands for ‘Hong Kong’, but really means Chinese currency anywhere outside the mainland. CNH foreign exchange risk can be hedged by Chinese and global banks just the same as mainstream global currencies such as the USD, EUR, GBP, JPY and AUD.

Whilst it is generally easier for Australian businesses to structure their trade in Australian dollars (AUD) to remove any currency risk, naturally it is always easiest for a foreign importer to pay in their own currency and this can sometimes secure an exporter a better price, given the convenience for the importer of not having to manage foreign exchange risk.

Tips for successful export relationships

While many of our clients know to engage us to assist with establishment of their offshore operations, we also have clients engage us after they’ve learnt some hard lessons. As always, the key is to surround yourself with experienced advisors and do your homework on any proposed business partners.

1. Due diligence is even more important

Resist the temptation to be blinded by the size of the deal or the size of the market you are entering!

When a foreign company doing business offshore enters into a new business relationship, a common mistake is a failure to undertake the same due diligence as the company would do in their home country.

All countries have different laws, regulations and norms of doing business, so it’s important to engage local expertise and advisors who understand the market to undertake physical, online, regulatory and financial background checks on who you are dealing with prior to entering into new business arrangements.

In some countries an internet search in English won’t help you. Two key reasons:

• search engines such as Google are blocked in a number of foreign jurisdictions
• for non-English speaking countries, you need to conduct searches on local entities or individuals in the local language, rather than English, to get an optimal result.

The key here, is to do the same or more due diligence on your business partner offshore than you would at home. If you are experiencing hurdles, we can assist.

2. The right payment structures can assist

International trade is conducted based on a continuum of trust. If you don’t know who you are dealing with, put payment protection mechanisms in place with providers that you trust.

Think about how you structure your trade:

• currency used – offering your purchaser trade terms denominated in their local currency can potentially secure better pricing and enhance your chances of being paid in timely fashion. Banks can help to hedge foreign exchange risk for widely used currencies.
• payment terms – seek whole or part payment up front, or at least staggered payments that stay ahead of the value provided over the contract period to help mitigate your payment risk.
• consider the use of Letters of Credit (and consider who the counterparty bank providing the Letter of Credit is).  This adds an additional layer of payment protection from your client’s bank.
• consider additional layers of protection – Letter of Credit confirmations, export credit insurance, standby letters of credit for services trade, bank performance guarantees if clear contractual performance criteria can be established and agreed.  This adds an additional layer of payment protection from either your client’s bank, or your bank.
• Importing and exporting? If you have incomings and outgoings in the same foreign currency, consider creating a natural hedge by opening a foreign currency account, thereby obviating the need for currency conversion.

If you’re experiencing debtor payment problems, understand clearly the reason why you aren’t getting paid:

• is the counterparty not creditworthy?
• does the counterparty have cashflow problems that are ‘point in time’, meaning they can pay you later?
• is your documentation incorrect? In some countries, local laws won’t allow the counterparties you are dealing with to pay you if you have not provided the correct supporting documents
• have you invoiced in AUD or USD, and the business you are contracting with can’t buy or remit foreign currency?

Your bank can assist you to ensure your trade documentation efficacy, with opening foreign currency accounts and with other foreign exchange hedging mechanisms.

4. Do what the big exporters do

Sometimes businesses think that the nature of the product they are exporting – perishable versus non-perishable – impacts the mechanisms that can be utilised to assist secure payment. This is incorrect.

Further, structuring of the trade payment security mechanisms of physical goods export activity should be no different for a smaller business than those utilised by the world’s biggest exporters, regardless of product type.

Where it is not feasible to seek payment up front, there are three ways that the world’s biggest exporters try to ‘guarantee’ payment for their exports to countries where payment certainty is more challenging:

1. Primary payment obligation rests with the importing party
2. Letter of Credit (bank guarantee of payment) issued in their favour – you’ll want this from one of the major international or local banks
3. ‘Confirmation’ on the Letter of Credit from one of their trade panel banks, or their house bank. This effectively substitutes the credit rating of their trade panel or house bank for the credit rating of the purchaser’s bank. In essence, in this example, it’s saying that if the importer doesn’t pay and the purchaser’s bank doesn’t pay, then the exporter’s bank must pay – if the trade documentation is correct.

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Further to the article below we have been advised that the latest interpretation by a number of local Chinese tax authorities is that:

“Chinese VAT will not apply to fees charged to Chinese students that are studying Australian university courses on-line in China as a result of not being able to travel to Australia as a result of COVID-19”.

We will continue to monitor the announcements and regulations put out by the Chinese Tax Authorities to see if they put out an official pronunciation on this particular topic.

Should you require any further details please reach out to one of our experts at the bottom of this article.

2021-03-30

VAT concessions to end 31 March 2021

This announcement will mean that from 1 April 2021, Chinese students studying Australian university courses remotely in China will be required to withhold a combined 6.72% of VAT and local charges on any payments to Australian universities.

International students have historically travelled to Australia to study. However, as a result of border closures due to COVID-19, many international students who have not been able to study in Australia have continued to undertake their study in their home country.

In response to the pandemic, China had provided a number of tax exemptions. One of these exemptions covered an exemption of VAT for students studying remotely until 31 December 2020. The Chinese Tax Authorities had verbally advised that this exemption would be extended. However, the Chinese Tax Authorities have now advised that this exemption will now cease from 31 March 2021. Therefore, from 1 April 2021, Chinese students studying Australian university courses remotely in China will be required to withhold 6.72% VAT and local charges on any payments to Australian universities.

Our initial understanding is that the rules should apply on a cash basis. Therefore, as most international students should have paid their annual course fees by the 31 March 2021 census date these fees should not be subject to the combined 6.72% VAT and local charges. However, any fees for courses undertaken after 31 March 2021 will be subject to the 6.72% VAT and local charges.

Actions for Australian universities

Should Australian universities be increasing fees to Chinese students to cover the 6.72% VAT and local charges?

To assist Chinese students to comply with these withholding obligations, Australian universities could appoint a withholding agent responsible for making payments. Any university that wishes to explore this should get in touch with us.

Get in touch

ShineWing Australia can assist with the compliance of withholding obligations and any advice regarding the ending of these VAT concessions.

Reach out to one of our experts below to find out more.

Contacts

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David Chu, Head of International Business, recently joined Thomas Sung (host) on the SBS Radio Cantonese Program to discuss the financials measures that both the Australian and Chinese governments have released in response to COVID-19 and analyse the potential opportunities these measures might bring. Listen to the podcast episode in Cantonese or read the transcript of his interview in English below.

English transcript:

Host: We know that the whole world is introducing a wide range of financial measures to save the market, whether it is Hong Kong, China or Australia. Our focus being placed on China and Australia. Actually the two countries are taking different financial actions. Is there any room for new business opportunities to be created? To answer this question, we have David Chu, Head of International Business of ShineWing Australia here today to share with us his analysis. Hi David!

David: Hi Thomas! Hi everybody!

Host: David, as we know, Australia and China have each introduced some financial measures to save the market. Now everyone is talking about one issue – whether any business opportunities have been created in this situation. Please share your thoughts with us.

David: Correct. The Chinese term for “crisis” – Ngai Gei, implies both danger (Ngai) and opportunities (Gei). This pandemic creates a difficult situation that companies may need to address. At the international level, close to 60% of the countries have shut down their borders, keeping all visitors out. Travelling is a big hassle. Trading has been affected a bit, and investment has to be put aside at this stage.

Host: However, it is not until recently that China has returned to work. To what extent has work resumed?

David: A company called China AMC issued a report, showing that the overall resumption of work has reached 89% in China. For listed companies this figure is close to 100%. For SMEs and privately held businesses, the percentage would undoubtedly be a bit lower. However, work has resumed to varying forms. Some have fully resumed working in office, some require employees to work from home, and some are working with flexible hours, in order to avoid forming clusters during the peak hours of commuting. It also varies between industries, such as manufacturing, where in some places workers aren’t able to go to work due to access issues. In some others, such as the service industry, consulting work can be done remotely. However, this may not work for the catering industry.

Nonetheless, the industries are gradually recovering. China has employed many indicators to measure work resumption, including the volume of coal use, passenger load in public transport, people travelling by air, road and railway and foot traffic in malls; all indicative of work resumption. It can also be substantially demonstrated by parcel delivery, internet usage, power usage and many other aspects. A report has recently been released in Shanghai based on electricity consumption where close to 85% of office work has resumed; roughly 70-80% in the medical sector (since some medical workers are deployed to fight the pandemic); 85% in shopping malls; a smaller 60-70 % in hospitality and catering, where there is still some challenges; and 80-85% in commercial buildings, i.e., an uptick in power usage in office buildings. This shows recovery is underway.

Host: What about logistics and supply chains?

David: Since the Chinese government wishes to stabilise its domestic economy, and therefore pays particular attention to logistics and supply chains, they will take whatever measures necessary to keep the supply chain unhindered. For example, now all highways, including tollways, are free. It is expected that this measure will continue until the end of June, in an attempt to support the transport of cargos. On carrying capacity arrangements, anything related to medical and pandemic control equipment such as masks, preventive clothing and sanitisers – among others – will be given priority for transportation.

Host: We understand that Australia and China have introduced their own respective financial measures, and the current business environment is different from the past. Given the mutual dependence and reliance at this stage, have any new business opportunities been created?

David: As I said, “crisis” implies both “danger” and “opportunities”. There are naturally new business opportunities. A lot of restaurants are affected in eat-in terms, but have more take-away business, which has increased by 20% to 40%. This has greatly increased the use of containers, such as plastic boxes and styrofoam boxes. These are not environmental friendly. So if Australian companies are able to provide environmental technology, they will have a great opportunity in single-use disposable food containers. Next is online shopping.

The shutdowns and social distancing required in many locations have encouraged people to shop more online, resulting in an increase in online shopping volume. What opportunities does this bring to Australian? If Australian companies are able to take advantage of this momentum in the way of shopping and promote their products to the Chinese market, they will have a great number of opportunities. There are over 1.4 billion mobile phones in China now, which means there are many people shopping over the phone. However, Australian companies have still needed to consider which platform to use, and which KOLs (key opinion leaders) to choose, to help them. Even if you manage to sell a product, how will you deliver it? This will require logistics and storage arrangements, and after-sales services. These, of course, need to be considered. Since lifestyle or the way of shopping has changed, Australian companies are given new opportunities.

Thirdly, online shopping has, in turn, bridged the gap between countries. While talking about selling our products to China, have we thought of the other way around? That Australian companies can help some Chinese brands in entering into Australia? This is also an opportunity. China is manufacturing a lot of products for different foreign brands. For example, if we go to the supermarket, we will find Made-in-China products on all shelves. By Made-in-China, however, it usually means OEM, where the foreign company provides their design and specifications for the Chinese manufacturer to make, assemble and affix the foreign label to the finished product. Actually, Chinese entities are able to independently manufacture some products, such as food and fashion. We may consider whether some Chinese products can be made to Western flavours, which, in fact, is feasible. The Australians of course have Australian flavours, seasoning and herbs. Is it possible for some of the herbs and spices to be made in China, and then exported with a Chinese brand? This is virtually achievable in China, but of course we need to ensure food quality, hygiene and safety. If the same level of safety and quality is achieved, why not use their own brands to market in Australia? Take garments and fashions for example. Many branded products are made in China. Is China able to design garments by themselves catered for the Western taste? China actually has the capability to do these kinds of designs now, but has not made them for the global market.

Host: With so many opportunities before us, is there any hindrance?

David: This will depend on when the traffic ban will be completely lifted. No one knows at this stage. Business dealings always require interpersonal communications and delivery of goods. On interpersonal communications, if people cannot sit down together and talk face-to-face, the communication will be less effective. By my own observations over the last few months, I have found that online conferencing software is able to handle 50% of the work, but the remaining 50% really needs face-to-face discussions. On the other hand, if borders are not reopened, cargos may not arrive on time. I heard that the recent cut in air traffic – such as the cut on Hong Kong-Melbourne and Hong Kong-Sydney flights to just one per day – has resulted in many cargos (which would have otherwise been carried by these passenger flights) could not be delivered in time. Even for the few that were shipped out – as I understand from my discussions with a few logistics operators – were charged 3-4 times higher than before the pandemic.

Host: This has inevitably raised the cost.

David: Yes. This has made export less desirable in some cases.

Host: Right. Then all we can do is wait until the pandemic passes. Big thanks to Mr David Chu Head of International Business of ShineWing Australia who is currently on a business trip in Hong Kong, for sharing with us the resumption of work in China as well as the trade relationship between Australia and China. Thank you!

David: Thank you Thomas! Thanks everybody!

Get in touch

David is attuned to the Asian listed company market, international taxation issues, corporate regulations and various stock exchange requirements and is highly regarded in the market place. Reach out below to discuss how we can support your business during this challenging time.

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The epicentre of what is now a global pandemic has shifted to Europe, it could potentially shift again to the US, and the global economy continues to reel from the impact of countries all over the world imposing varying degrees of a lockdown.

China implemented drastic measures and the largest quarantine in human history, and less than two months after taking effect, signs of a recovery have begun to appear. By one estimate, over 90% of Chinese factories and enterprises have now resumed work and production, so it is hoped that this will lead to global supply chains reliant on Chinese inputs progressively returning to normal from this point.  This has also led some to ask whether the power of the Chinese consumer could put a floor under the global economy.

In Hubei province, where Wuhan is the capital city, months of quarantine measures will be removed this week, and authorities will allow factories to resume and interprovincial travel to take place. In Wuhan itself, controls on outbound traffic will be lifted by 8 April, virus-free neighbourhoods will come out of quarantine and public transport will resume.

Daily coal consumption at major power generation plants throughout China reached 616,700 t/d yesterday, the highest in two months and over two-thirds of normal usage this time last year. Here in Shanghai, along with other major cities, it’s almost beginning to feel like business as usual. Many people are back in the office, restaurants and shops have customers, businesses are trading, and Apple is reopening its retail stores. Even peak hour traffic has returned.

Previously, Shanghai, along with local governments around the country, mandated wearing masks in public and issued the highest level health alert. But the National Health Commission recently revised policy regarding masks, and the municipal government has downgraded the health alert from level one (highest) to level two.

The mainland’s two stock exchanges, Shanghai and Shenzhen, managed to avoid the panic that led to breathtaking drops in global stock markets around the world. Buoyed by the government’s response and increasingly confident that China has controlled the virus, the Shanghai composite is only down 12.8% YoY, the Shenzhen composite down a mere 7.1% YoY, and both edging back up. Mainland investors continue to rally and keenly await further signs of recovery, such as the government announcing its “Two Sessions”, the annual plenary meetings for lawmakers and politicians.

But as signs of recovery gradually manifest, data from the National Bureau of Statistics illustrates the economic devastation caused by COVID-19. Key indicators dropped by double-digit percentages in Q1/20, with retail sales down 20.5% YoY, fixed-asset investment down 24.5%, government infrastructure investment down 30.3%, and real estate investment down 16.3%. And just as China’s workers and businesses are coming back online, major trading partners are shutting down, prompting some to further revise growth forecasts in light of weakening demand for exports.

Yet it is worth remembering these numbers are not indicative of structurally weak demand. The average family that was planning to buy new clothes, a car and a house, has deferred these purchases because of a lockdown. Ten years ago, a sharp decline in global demand for exports was catastrophic. But net exports (value of exports minus the value of imports) over the last several years have contributed roughly zero to China’s GDP growth, and consumption now accounts for almost 60% of the economy.

The more pressing issue for China in terms of weak global demand is unemployment. The application of force majeure clauses in contracts, and the sheer volume of orders being cancelled, have dealt a heavy blow to factories. On this front, subsidies, tax relief, exemptions for rent and insurance, along with reimbursement for unemployment, were among the first measures taken by the authorities. More importantly, the central government recently announced new monetary easing policies, along with special treasury bonds for local governments to fund infrastructure projects. And there’s still plenty of fuel left in the tank for further economic stimulus down the track.

Certainly, consumer confidence is returning slowly, and recovery is predicated on China continuing to control the virus. Imported cases are a daily problem that continue to bring the risk of a second wave. But China’s progress containing the virus has bought time to learn and adapt, and so far, at least in Shanghai, it’s back to business for now.

Contacts

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In less than 40 years, China has reduced its poverty rate from 90% to just 2%¹ – coming very close to achieving the first of the United Nation’s Sustainable Development Goals (SDGs): No poverty.

This is not the only one of the 17 SDGs that China is focussed on either. As its Belt & Road Initiative (BRI) continues to develop, China has committed to an increasing focus on ensuring the sustainability of both the projects and the industries that support this, such as resources and mining, both domestically and internationally.

Unveiled in 2013 by China’s leader, Xi Jinping, during visits to Kazakhstan and Indonesia, BRI is an economic and trade development spanning continents, with objectives to bring countries together, create large markets, improve infrastructure, and assist with capital flows and cultural exchanges.

The initial focus for BRI has been on improving physical infrastructure along land corridors that roughly equate to the old silk roads. Complementing the land routes are the maritime silk roads which aim to invest and foster collaboration in South East Asia, Oceania and Africa. BRI is one of the largest infrastructure and investment projects in history, at the outset it covered 68 countries and encompassed 65% of the world’s population.

With the signing of the UN Sustainable Development Goals (SDGs), this initiative expanded to engage the principles set out under these SDGs. Ratified by 193 countries via UN resolution in 2015, these Goals include 169 global targets grouped into 17 goals, and replaced the Millennium Development Goals which had a set end date of 2015. The end date for the SDGs is 2030.

At inception, BRI only covered 30% of world GDP but a much larger 65% of world population². The countries it touches have considerable populations and will have a significant impact on the success of the SDGs by its end date. In 2017, BRI expanded to take on the mantle of Green Belt & Road to show the heightened emphasis on sustainable improvements to industry practices and living standards, which the leadership of China wants to align with SDGs.

While BRI and the SDGs were started in different ways, there are many similarities in what they aim to achieve. If they are to both be successful across Asia, Europe, the Pacific and Africa they will need to work together.

To this end, there are many lessons that can be taken from the development of China’s economy over the last forty years. As noted, in 1981 almost 90% of the Chinese population was living in extreme poverty. In 2013 this had improved to less than 2%. In sheer numbers, this is equivalent to 800 million people and it has had a corresponding impact on the improvement to international statistics. In 1981, 45% of worldwide population was in extreme poverty, this has reduced to almost 10% in 2015.

BRI’s initial focus, on building infrastructure, aligns with goal number nine of the SDGs – Industry, Innovation and Infrastructure, and also supports the achievement of goal number eight – Decent Work and Economic Growth. However, over 70% of global emissions come from building and using infrastructure. For this development to be sustainable, it must utilise new technologies, techniques and standards. To support these aims, the Chinese government has changed the emissions requirements for automotive vehicles, and in Beijing these are now more stringent than in most Western countries.

Infrastructure such as power, water, health care and manufacturing built under the BRI program will hopefully incorporate China’s learnings around emissions reduction and efficiency measures that that have been developed over the last 40 years.

Given the sheer size of the BRI, the potential for this multi-faceted project to improve the lives of many it touches is enormous. And if the SDGs are to be achieved, the 17th goal – Partnerships for the Goals, is a necessity.

As the largest and most encompassing infrastructure project in recent history, and the most ambitious internationally agreed human goals, both BRI and the SDGs will need to work in partnership to achieve significant impacts by 2030.

Key industries that support our populations and global infrastructure – notably energy, mining and resources – will need to partner these goals as well in order to create lasting, meaningful and effective impacts to secure our shared future and prosperity.

The Global Goals for Sustainable Development

1. No Poverty
2. Zero Hunger
3. Good Health and Well-Being
4. Quality Education
5. Gender Equality
6. Clean Water and Sanitation
7. Affordable and Clean Energy
8. Decent Work and Economic Growth
9. Industry, Innovation and Infrastructure
10. Reduced Inequalities
11. Sustainable Cities and Communities
12. Responsible Consumption and Production
13. Climate Action
14. Life Below Water
15. Life on Land
16. Peace and Justice Strong Institutions
17. Partnerships for the Goals

¹ “The global decline of extreme poverty – was it only China?”, Our World in Data, 2017

² https://www.fbicgroup.com/sites/default/files/B%26R_Initiative_65_Countries_and_Beyond.pdf

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Supported by Austrade, Efic and Export Council Australia, our experts will provide practical tips and case studies for how best to navigate export opportunities to maximise your export potential with the right partners.

Benefits of attending

• Hear from and engage with experts that specialise in supporting Australian businesses who import/export new and existing products and services
• Network and build connections with expert partners
• Be informed of the latest support opportunities available for financial assistance
• Keep updated on the latest opportunities for state government awards that are provided
• Uncover what China is looking to achieve with its first ever China International Import/Export Expo show in November

Brisbane event details

Date: Thursday, 30 August 2018
Time: 12.00pm-2.30pm (lunch and refreshments provided)
Venue: ShineWing Australia, Riparian Plaza, 71 Eagle Street, Brisbane QLD 4000
Format: Interactive seminar style
RSVP: Monday, 20 August 2018 to marketing@shinewing.com.au

Melbourne event details

Date: Monday, 27 August 2018
Time: 12.00pm-2.30pm (lunch and refreshments provided)
Venue: ShineWing Australia, Level 10, 530 Collins Street, Melbourne VIC 3000
Format: Interactive seminar style
RSVP: Monday, 20 August 2018 to marketing@shinewing.com.au

Sydney event details

Date: Friday, 24 August 2018
Time: 12.00pm-2.30pm (lunch and refreshments provided)
Venue: ShineWing Australia, Level 8, 167 Macquarie Street, Sydney NSW 2000
Format: Interactive seminar style
RSVP: Monday, 20 August 2018 to marketing@shinewing.com.au

More information

For more information, please contact the ShineWing Australia Marketing team via marketing@shinewing.com.au.

The post Open doors: explore your export potential appeared first on SW Accountants & Advisors.

This was the observation of ShineWing Australia’s Managing Partner, Mr Danny Armstrong, at today’s Australia China Business Council (ACBC) Canberra Networking Day, of which the firm is a new national partner and event sponsor for today.

Mr Armstrong noted that while trade and investment between the two countries remained strong, he echoed the sentiments of ACBC National President, the Hon, John Brumby AO, that many commentators and analysts all too often underestimate the growth and sheer dynamism of the Chinese economy – as well as the huge benefits of this to the Australian economy and our living standards.

ShineWing Partner, John Paolacci and Malcom Turnbull at Canberra Networking Day

Mr Brumby quite rightly points out if we look at the $183 billion of two-way trade between our countries as a great achievement, that has undoubtedly lifted Australian household incomes and living standards and helped build some great Australian companies, then this really is only the beginning.

“Having lived in Shanghai for five and a half years and working to set up a big Australian bank, I am confident that business can continue to lead the way in cultivating strong, mutually respectful bonds between our two countries.

“There are extraordinary opportunities for Australian exporters as well as service providers by deepening our connections through trade and investment. However, we must understand the way in which we can do business together and China can be tricky to navigate if you don’t have the right partner or experience,” he said.

Mr Armstrong noted there are many areas where China is actively looking to form long term partnerships to help them continue to develop and transform their economy. For example, like Australia, China is facing increasing pressures from an aging population, with a predicted 248 million Chinese over the age of 60 by 2020.

“While the Chinese Government has embarked on an ambitious program to transform its aged care industry, the sector is still in its infancy.

“Policies have been put in place to actively attract investment and encourage the adoption of best practice services and infrastructure to meet the goals of providing 35 to 40 care beds per thousand elderly citizens, and a workforce of 10 million aged care workers by 2020.

“As our partner and Aged Care Leader John Paolacci stated on the panel session today, this represents enormous opportunities for Australian companies to take their expertise and learnings to China and, in the process, help deliver strong and more positive relationships between our two countries,” he said.

2018 Canberra Networking Day – Julia Bischop

The ShineWing delegation

For more information, please contact:
Amanda Lee
Head of Business Development and Marketing
T: +61 8653 1853
M: +61 430 322 306

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