The Middle Kingdom’s Australian frontier

Australia is unprepared for a big influx in Chinese visitors, both as tourists and investors.

Start to prepare for a new era in the Australian Chinese relationship. For the last couple of decades every time we thought of China we have tended to examine trends in demand for iron ore, coal and gas. The enormous demand by Chinese for these base commodities has underpinned government revenue and that of our miners.

Chinese demand is not going to go away but all the signs are that in coal, and perhaps gas, the rate of demand growth will at best be subdued. Iron ore might be stronger, although there are big increases in global capacity on the horizon.

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