China and Australia have signed a free trade agreement which will allow for a better collaboration and exchange between the two countries. Under the free trade agreement (FTA) many goods will have zero trade taxes. This treaty is also an opportunity for foreign investors in China coming from Australia as well as vice versa. Our Chinese lawyers can tell you how this treaty and other bilateral agreements can influence your business.
The provisions of the free trade agreement
One of the most important provisions of the FTA is the reduction of the trade tariffs for products imported and exported
by the two signatory countries. This will take place gradually and about 97 percent of the Australian exports to China will have zero taxes. Some of the products included in this free tax regime are: beef, dairy and wine. When the reduction phase is complete, Australia will have zero tariffs on all of the goods imported from China.
The free trade agreement also offers advantages for foreign investors from the two countries. Private Chinese investments in Australia (no larger than $830,000) will not be subject for approval from the Australian Foreign Investment Review Board. At the same time, some of the most important service businesses from Australia (education, tourism, communication) will gain better market access into China.
If you are a foreign investor from Australia looking to start a business in China
, our Chinese attorneys
can help you understand all the legal requirements for doing business in the country.
China-Australia trade in numbers
China and Australia are important trade partners. Beef is the most important product imported by the Chinese from Australia. The top five products exported by China to Australia include: clothing, telecommunication equipment and parts, computers, furniture and daily items. Australia exports the following products to China: iron ores and concentrates, coal, gold, education services and copper.
The China-Australia free trade agreement
is an important step for a better trade and international relations between the two countries. If you would like to know more about how the provisions of this treaty apply to your import and export business, you can contact our law firm in China