China puts out welcome mat for Howard

Print this page China puts out welcome mat for Howard20apr05THE size and complexity of the emerging Chinese economy is difficult to comprehend.Its potential for absorbing raw materials, manufactured goods, food and business know-how is as large as its capacity to supply the world with cheap consumer products.
Prime Minister John Howard could hardly be welcomed into the inner confines of the Chinese administration at a more propitious time. Mr Howard has held formal talks with Chinese President Hu Jintao and Prime Minister Wen Jiabao on the establishment of a bilateral free trade agreement – an agreement potentially worth billions of dollars to Australia.
In many senses, China and Australia are compatible trading partners.
Australia has many of the raw materials, including coal and iron ore, which are essential to feed China's enormous industrial revolution. But Australia must aim to be more than simply China's mine, as it was Japan's mine 40 years ago.
Mr Howard must argue that food production, manufacturing and banking be embraced in any broad trade accord with China. Because China has almost untold potential for trading partners as its 1.3 billion people move from a subsistence farming community to a free market manufacturing economy, no trade concessions will be easily won by Mr Howard.
China's 740 million farmers fear the impact on traditional farming methods created by increased imports of food.
While Australia's banks crave a foothold in China, the Chinese banking industry is wary of change and external competition.
These are the challenges facing Mr Howard in the short term and Australian manufacturers and industrialists in the longer term.
The imperative is that Mr Howard acknowledges the welcome mat offered by China and continues dialogue for increased trade access for our companies in China.
Cautionary view of economic prosperity
THE blunt warnings about the likely challenges facing the South Australian economy made yesterday by the head of the Economic Development Board, Robert de Crespigny, cannot be ignored.
The current buoyant economic conditions are no guarantee that the South Australian economy will continue to outperform most of Australia. Mr de Crespigny said the likely expansion of the Olympic Dam copper/gold/uranium mine, the potential of mineral reserves in the Far North and the air warfare destroyer contract would be significant boosts to the economy – if they occur.
But he warned: "If they don't come through, we must push forward and that is a major challenge for us."
Waning business investment, problems in the manufacturing sector and the high level of youth unemployment are areas of concern.
Mr de Crespigny's cautious optimism is no cause for alarm about the state's economy. The signs of continued growth are good.
However, it is a sobering reminder that challenges to prosperity still lie ahead.
Responsibility for all editorial comment is taken by The Editor, Melvin Mansell, 121 King William St, Adelaide 5000.
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