Chinese envoy calls on Australians to seize opportunities in China's "new normal"

Chinese Ambassador to Australia Ma Zhaoxu on Monday called on Australians to seize the opportunities offered by China's economic "new normal," China's current economic transformation.

In his article - China and Australia Will Grow Closer - published on The Australian daily newspaper, Ma said that China's economy is entering a "new normal" and so is the China-Australia economic relationship.

"The growth trajectory of China's economy is of keen interest to many Australians, who may be concerned about China's economic slowdown and its repercussions for Australia's economy."

"This is understandable since the two economies are highly complementary."

But a closer look at China's "new normal" might "lead us to a different and more reassuring observation," said Ma.

"After three decades of high-speed growth, China's economy is shifting towards a medium-high growth model, which saw 7.4 percent growth last year and is to maintain 7 percent growth this year, still one of the world's fastest-growing economies."

Given that China's gross domestic product exceeded 10 trillion U.S. dollars last year, the increment will be more than 700 billion U.S. dollars - equivalent to nearly half of Australia's GDP in 2014, the ambassador said.

Australia's former foreign minister Bob Carr once said: "China growing even at 7 percent is adding more dollars to its economy than it was a few years ago when it was growing at 10 percent."

Ma suggested that China's economy should not be viewed only by its growth rate, saying, "Structural adjustments are now a vital part of China's economic story."

China's "new normal" focuses on quality, efficiency and innovation that will guarantee economic sustainability, he said.

Ma said China's economic structure is improving, most notably reflected by a fast-growing service sector that accounts for up to 48 percent of GDP and a higher level of domestic consumption. More inputs go into education, healthcare and other social services to deliver higher living standards.

"Overall, China's economic condition is changing for the better."

"The Australian economy is in transition as well. And the new normal of the Chinese economy will continue to play a vital part in that process," Ma said.

Falling commodity prices and Chinese economic restructuring have prompted concerns about the fading of Australia's mining boom, which was driven largely by China's economic growth and strong demand for resources from 2008, he noted.

The value of Australian iron ore exports to China did fall slightly last year due to the slump in commodity prices, but the volume remained high and reached a record of 548 million tonnes, increasing by 31.6 percent on 2013.

"Demand for iron ore and coal will remain strong, and Australia 's resources exports to China will stay robust since China's dynamic industrialization and urbanization will continue for many years to come," Ma said.

"Furthermore, one should not neglect the fact that a new boom - in services, agriculture and infrastructure - is gaining momentum. China's economic restructuring is generating greater demand for tourism, education and financial services as well as agricultural produce and new technology," he added.

Services trade between China and Australia reached 896 million AU dollars (716 million U.S. dollars) in 2013. About 720,000 Chinese tourists traveled to Australia last year, constituting the largest source of tourism revenue to the Australian economy.

"Much more potential remains to be tapped," the ambassador said, adding that statistics show that a total of 100 million Chinese tourists traveled abroad last year, and more than 500 million overseas trips are estimated to be made in the coming five years.

"Australia could get a bigger share of this huge Chinese market if the right measures were put in place," he said.

The ambassador pointed out that Australia's universities are also among the most popular destinations for Chinese students and China continues to be one of the largest export markets for Australian education services, as many more Chinese parents are planning to send their children to Australia for study.

Australia's business and financial services sector is well placed to benefit from the opening up of China's financial system and its efforts to internationalize the Chinese currency, the renminbi (RMB).

"Success stories such as the Sydney RMB Clearing Bank and Australian financial institutions operating in the Shanghai Free Trade Zone will only encourage more followers," Ma predicted.

According to him, China is going to import more than 10 trillion U.S. dollar worth of goods and services and invest more than 500 billion U.S. dollars abroad in the coming five years, presenting new trade and investment opportunities to Australia's business community.

Ma said the significance of three major opportunities for China- Australia cooperation - the free trade agreement, the Asian Infrastructure Investment Bank and the "One Belt, One Road" project - needs to be fully appreciated.

"Seizing these opportunities is vital to both China and Australia," the ambassador said.

"There are plenty of reasons to feel upbeat about the outlook of our respective economies," Ma said, "But being optimistic about the prospect is one thing, making it happen is another."

"It needs, especially, innovative ideas and bold action by and between both countries," he said. Endi