Current and Future Benefits to Australia from China's Economic Reforms?

Parikshit K. Basu, John Hicks, Richard B. Sappey

Research output: Book chapter/Published conference paperConference paperpeer-review

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Abstract

The primary focus of this paper is to assess the implications of China's international opening up for Australia. We seek to answer two main questions. What are the factors in China that have given rise to the current resources boom and might there be similar trade and investment opportunities for Australia arising from China's ongoing development in the future? China began its economic reform process in 1979 largely because its economic performance, although not dismal, had failed to keep up with those countries with which China liked to compare itself. Under the new economic emphasis, China's economy continued to grow and the rising incomes of the Chinese people generated an increasing demand for consumer goods which had been relatively unknown in China. This, in turn, gave rise to the need for basic products which China had little capacity to produce. By late 1990s early 2000s basic processing plants had begun to flourish in China giving rise to a world-wide boom in commodities such as ore and coal. This boom continues through to today and Australia, to this point, has been one of the chief beneficiaries. In all likelihood, the commodities boom will continue well into the future although a number of risks are apparent. Australia is confronted by both opportunity and threat. To the extent that the commodities boom continues Australia benefits. But anything that disrupts that boom will have severe consequences for Australia. In addition, the continuation of the boom may be distracting Australians from other potential opportunities that exist in China.
Original languageEnglish
Title of host publication7th GCBE
EditorsAtul Gupta
Place of PublicationRome, Italy
PublisherAssociation for Business and Economics Research
Pages1-32
Number of pages32
ISBN (Electronic)9780974211494
Publication statusPublished - 2007
EventGlobal Conference on Business & Economics (GCBE) - Rome, Italy, Italy
Duration: 13 Oct 200714 Oct 2007

Conference

ConferenceGlobal Conference on Business & Economics (GCBE)
CountryItaly
Period13/10/0714/10/07

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