The People’s Bank of China surprised observers by cutting its reserve requirement ratio by 100 basis points to 18.5% on the weekend. EPA/MARK

China’s required reserve ratio cut will nudge Australia along

Most of the new credit released after China’s central bank cut the required reserve ratio will be used to fund new investment in infrastructure and construction – and that’s good news for Australia.
A still from a NSW election ad, run on television and online, which says “selling the electricity network is wrong; selling it to another country is just not on”. CFMEU Mining/YouTube

Playing the China card may win votes, but it’s bad for Australia

Labor and the unions have decided to play the China card in the NSW election. Such scare campaigns ignore the facts, including that Australia has invested almost as much in China as China has here.
Celebrations in China for its lunar year see a seasonal plunge in output - but it’s good news for Australia. AAP/EPA/Rolex Dela Pena

New Year celebrations give Chinese economy a hangover

In China, the value of output produced in the December quarter drops a staggering 53%. And it’s down to New Year celebrations.
Australia’s mid year budget figures reveal an even deeper reliance on China than has been thought. AAP/EPA/WU HONG

Why China remains our best hope to repair budget woes

Wayne Swan couldn’t do it. Joe Hockey has tried and failed. Getting the budget back in black is proving to be mission impossible. But it could be a whole lot worse. The Commonwealth Government’s bottom…
Australia’s love affair with China is grounded on more than proximity and fascination. William West/AFP/AAP

China‑Australia doomsayers overlook strong fundamentals

Pop quiz: in 2014 the quantity of Australian iron ore demanded by China has: a) fallen sharply, b) fallen modestly, c) remained the same, d) increased modestly, e) increased sharply? The answer in just…
Prime Minister Tony Abbott greets Chinese President Xi Jinping before their bilateral meeting on trade. Mike Bowers/AAP

Australia‑China free trade only a first step to real partnership

Today’s completion of free trade talks with China has been ten years in the making. Australia already has free trade agreements (FTAs) with Japan, the United States, Korea, Singapore and New Zealand. However…
Tony Abbott is meeting Chinese President Xi Jinping in Beijing this week. Lukas Coch/AAP

Abbott’s awkward APEC moment over Asian infrastructure bank

Forget shirt-fronting Russian President Vladimir Putin. Prime Minister Tony Abbott’s most challenging task this week will be breaking an uncomfortable silence with Chinese President Xi Jinping. And he…
China needs to adopt a productivity reform agenda to avoid falling living standards. AAP

Look to China’s productivity gains, not headline growth figures

China’s economy grew by 7.3% during the third quarter of 2014, meeting market expectations. Polling by Reuters and the Wall Street Journal put the consensus forecast at 7.2-7.3%, the slowest pace in more…
Prime Minister Tony Abbott is inching Australia closer to a free trade agreement with China. Parker Song/EPA/AAP

Key events in the 10‑year journey towards a China‑Australia FTA

The clock is ticking down to the end of year deadline Australian Prime Minister Tony Abbott has given for sign off on a free trade agreement with China. In this China-Australia FTA series we explore what…
Fears Australia may be hammered in China’s attempts to rebalance its economy, might be overstated. Image sourced from www.shutterstock.com

Weighing the risks for Australia as China rebalances

China’s leaders have been vocal in their support of a new growth model, one where consumption leads the way. Economic commentators fret about what this means for Australia. One view is that economic pain…
The Australian government hopes to finalise the Free Trade Agreement with China by the end of the year. PARKER SONG / POOL/ AAP

Why China‑Australia FTA may still be some way off

This week treasurer Joe Hockey, and trade minister Andrew Robb have been in China for the inaugural Australia-China Strategic Economic Dialogue. These talks are one part of the “Strategic Partnership…
A growing share of Australian exports are heading to China, leading commentators to ask if we should be hedging our bets. AAP/Will Russell

Too good to be true: weighing up Australia’s exposure to China

Australia exported A$94.4 billion in goods to China last year, making China by far the single most important destination for Australian merchandise. Similarly, China is also the most important destination…
The economic argument for an FTA with China isn’t as strong as some may assume. derekGavey/Flickr

Why an Australian FTA with China has never stacked up

Despite trade in goods and services between Australia and China exceeding A$125 billion in 2012, negotiations between the two countries for an FTA that began in 2005 have been so unproductive that both…
The scale of China’s off-balance sheet lending may seem extensive, but it’s not the scary beast that many commentators have made it out to be. Philip Jagenstedt/Flickr

Light among the shadows: the upsides to a financial crisis in China

In recent months, talk of an emerging crisis in China’s financial sector has been getting louder. A few weeks ago such chatter reached a crescendo, at least in terms of a narrative, when two Nomura economists…
A currency conversion deal between Australia and China, which would allow the renminbi to be traded directly against the Australian dollar, would slash costs for thousands of businesses. AAP

What would a Chinese currency conversion deal mean for Australia?

Julia Gillard leaves Australia for China tomorrow, her second trip to the Middle Kingdom as Prime Minister. As befits China’s status as Australia’s most important trading partner, the trip has attracted…
Social stability is the main driver behind the release of China’s reform guidelines on income equality, which contained frank admissions of the drivers of inequality. flickr/svigier

China tackles income inequality, but is silent on state corruption

For all the economic success that China has enjoyed in recent decades, such as record levels of poverty reduction and growth in real per capita consumption, a consistent conclusion of academic research…
The Asian Century will present Australia with economic opportunities, as well as significant challenges. shutterstock

In the Asian Century, there’s no such thing as success without sacrifice

By 2025, Asia will account for nearly half of world output. Even under conservative growth scenarios, three out of the world’s five largest economies will be in Asia. By the same year, income per person…
Iron ore miner Fortescue Metals announced this week it was delaying $1.6 billion in investments as iron ore spot prices continued to fall: but is it really time to panic about China’s manufacturing sector? AAP

Iron ore prices continue to fall, but is it really time to panic about China?

This week we learnt that Australia’s GDP growth fell significantly in the second quarter compared with the first. The fact that GDP growth is a lagging indicator raises serious questions about the current…
China’s top universities are courted by the top 20 universities in the world. AAP

Go8 and China 9 extend alliance to promote international student flow

A newly extended alliance between the Group of Eight coalition of Australian universities and the China 9 universities is helping to build “globally mobile students” says Go8 executive director Michael…
Tony Abbott has taken aim at Chinese investment that comes with government connections, arguing that such investment is not in Australia’s national interest. AAP

Dear Tony Abbott: block Chinese investment at your own risk

Opposition leader Tony Abbott made headlines recently when during a visit to China, he declared that “it would rarely be in Australia’s national interest to allow a foreign government or its agencies to…

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