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Business

Last updated at: (Beijing Time) Friday, October 24, 2003

China, Australia agree on free trade study

Australia and China are expected Friday to agree to conduct a feasibility
study into a free trade pact between the two countries.

Foreign Minister Alexander Downer told Australian Broadcasting Corp. radio
Friday that it will be two years before an agreement between Australia and
China on discussing a bilateral trade pact delivers any benefit.

"At the end of those two years, if the scoping study is positive in its
recommendations...in those circumstances as long as China was by then a
market economy, we'd move toward negotiating a free trade agreement," said
Downer.

Meanwhile, President Hu Jintao vowed to instill a more vigorous and open
economic system and create more business opportunities for overseas
enterprises based on equality and mutual benefit.

China will further its opening-up and establish a stable and transparent
system for foreign economic management in line with the demands of a market
economy and the World Trade Organization, he said, noting China will improve
its protection of intellectual property rights.

Hu made the remarks when meeting Australian industry and business groups
Thursday. About 20 pivotal Australian commerce representatives attended the
meeting.

Acknowledging the positive inroads already made by Sino-Australian economic
and trade co-operation, Hu said there are still much broader grounds for
synergy as the economies of the two nations are highly complementary.

Hu said China, with its rapid economic growth, will see a sustainable
increase in demand for energy and resources, which Australia can provide.

Hu said China's campaigns to develop its western regions and revitalize its
northeast industrial base will provide a glut of business opportunities,
adding Australian investment is welcome.

Warwick Smith, chairman of the Australia-China Business Council, said
Australia's business community is "very much encouraged" by prospects for
China's development and the potential for mutual co-operation.

On the trade front, China is now Australia's third largest partner and
Australia ranks ninth on China's list. Official statistics show that two-way
trade grew by a fifth annually over the past five years and the annual trade
was in excess of US$10 billion over the past three years.

According to the China Chamber of Commerce in Australia, China's total
trading volume is estimated to reach US$650 billion by 2005, bringing
extremely bright prospects for China's economic and trading partnerships.

During separate meetings Thursday with New South Wales (NSW) Governor Marie
Bashir and Premier Bob Carr, Hu stressed China attaches importance to closer
friendly exchanges and co-operation with the state in various fields.

Carr said China is NSW's third largest trading partner and Chinese is the
second most spoken language in the state.

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