China mission opens door to vast interior
He said China's fastest-growing cities, and seven of the top eight provinces, were situated inland, and the consulate in Chengdu would help "press Australian businesses into western China", particularly as the bilateral economic relationship moved beyond resources-dominated trade.
"The fact is that this is a relationship between Australia and the new urbanised China," Senator Carr said. "As hundreds of more millions Chinese gravitate to these great cities, there will be a need for Australian goods and services."
But he repeated a warning from his department from a briefing paper in April, which said it was concerned business disputes had resulted in criminal charges, which was "putting considerable strain on the bilateral relationship".
"With the rising level of trade in the two countries, there's probably no surprise that the number of commercial disputes have been rising, and we want to provide guidance on how best to manage this challenge," Senator Carr said.
High-profile cases involving jailed Australian businesspeople including Du Zuying, Charlotte Chou and Matthew Ng have tended to involve murky disputes with powerful local business partners.
Australia's ambassador to China, Frances Adamson, said the commercial disputes initiative was not an indication of a large increase in incidents. "But the best way we can help is to be on the front foot," she said. "A couple of things have crossed my desk but nothing more."
Chinese negotiators have also been driving a hard bargain by demanding Australia relax investment restrictions before it considers agreeing to a free trade agreement. But Senator Carr said he did not understand why Chinese would find it difficult to invest in Australia.
"I can't think of any reason that should be the case," he said, adding he also could not see the justification for many Australians to be wary of Chinese foreign investment, as was suggested by a recent Lowy Institute poll.
The consulate in Chengdu will be headed by Nancy Gordon. It will join Australia's other diplomatic missions in Beijing, Shanghai and Guangzhou.
Ching Lee, the head of the Australian Chamber of Commerce's Chengdu branch, moved from Melbourne in 1996 to set up Rheem's operations in the city.
He said Australian companies such as BlueScope Steel, ANZ and Cochlear have a presence in Chengdu, but that there was room to take advantage of a lot more opportunities, including in healthcare and mining.
Frequently Asked Questions about this Article…
Australia opened its fourth diplomatic mission in Chengdu to provide a launchpad into western China’s fast-growing inland cities and provinces. For investors this signals government support for expanding beyond resource trade and easier access to rising demand for Australian goods and services as urbanisation in China increases.
The consulate aims to press Australian businesses into western China by offering on-the-ground support, local contacts and commercial guidance. Officials say being ‘on the front foot’ will help manage challenges and open up opportunities in sectors beyond resources.
The article notes Australian companies such as BlueScope Steel, ANZ and Cochlear have a presence in Chengdu. It also mentions Ching Lee who moved from Melbourne in 1996 to set up Rheem’s operations in the city.
Nancy Gordon will head the Chengdu consulate, which joins Australia’s other diplomatic missions in Beijing, Shanghai and Guangzhou. The addition reflects a strategic push to engage with China’s inland economic growth centres.
The article highlights a government briefing warning that some business disputes have escalated to criminal charges, putting strain on the bilateral relationship. High‑profile cases involving jailed Australian businesspeople (including Du Zuying, Charlotte Chou and Matthew Ng) often involved murky disputes with powerful local partners, so investors should be cautious about partnership and dispute‑resolution arrangements.
Officials say that with rising trade the number of commercial disputes has been increasing, which prompted the consulate’s commercial disputes initiative. However, Australia’s ambassador to China stressed the initiative is not evidence of a large spike in incidents—rather it’s about being proactive in helping businesses manage problems.
Yes, the article reports Chinese negotiators have been driving a hard bargain by demanding Australia relax investment restrictions before considering a free trade agreement. Foreign Minister Bob Carr said he does not understand why Chinese investors would find it difficult to invest in Australia and questioned scepticism about Chinese foreign investment reported in some polls.
The article suggests there is room for more Australian participation in sectors beyond resources, including healthcare and mining, as China’s inland urban centres expand. Everyday investors should note increased demand for Australian goods and services as urbanisation continues, while also weighing partnership and regulatory risks.
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