China and Australia Modernized Economic Development

宗曉瓊

Abstract： In the 40 years since the establishment of diplomatic ties between China and Australia in 1972， bilateral trade has reached new heights， mutual investment has continued to grow， and economic and technical cooperation in tourism and education has been fruitful. In contrast， the simultaneous economic development of China and Australia that began after the establishment of New China compares the changes and developments in the economically different stages of China and Australia at different stages. It is found that there is complementarily strong between China and Australia in economic and trade cooperation， and the potential for cooperation between the two countries remains to be further excavated. In the face of the impact of the financial crisis， China and Australia have different responses. Through the comparison of economic development during the same period， the central achievements of economic and shortcomings of China and Australia are analyzed.

Keywords： China， Australia， economic finance， development concept

Ⅰ. Comparison of Economic Development between Australia and China

The economic complementarity between China and Australia is mainly reflected in goods， services and investment areas. It also covers more than ten areas such as e-commerce， government procurement， intellectual property rights and competition.

The economic complementarity between China and Australia is mainly reflected in the following aspects. The People's Republic of China Government and the Australian Government Free Trade Agreement 2015.

1. In the area of goods， both products account for 85.4% of the export volume. After the agreement comes into effect， zero tariffs will be realized immediately. After the tax cut transition period， Australia's final zero-tariff and the ratio of trade volume will reach 100%; China's zero-tariff and trade share will reach 96.8% and 97%， respectively. This greatly exceeds the 90% tax reduction level of General Free Trade Agreement.

2. In terms of service industry， the Australian side promised to open the service sector to China in the form of negative list when the agreement took effect， becoming the first negative list of countries in the world to provide service trade commitments to China. The Chinese side has opened the service sector to the Australian side with an active list. In addition， the Australian side also made special arrangements for the Chinese on holiday working mechanism.

3. In the investment field， the two parties will mutually grant MFN status at the time of the agreement's entry into force; Australia will also invest in lowering the threshold for examination of Chinese companies investing in Australia and make arrangements for convenience.

Ⅱ. The Financial Crisis in China and Australia

The impact of the financial crisis on China's economy is multifaceted and coexists with challenges and opportunities. Australia is the leading country in the world， and its natural resources are prosperous. Australia's economy continued to grow， but it also experienced a recession.

1.China' s Economic Crisis

First， the background of the financial crisis. Economic and Commercial Counsellor of the People's Republic of China Embassy in Australia  2016.

Regarding the causes of the financial crisis， scholars have different opinions. Those who hold neoliberal positions believe that the “crisis of financial supervision，” “policy failures，” “overly optimistic risk assessments” have caused the advent of the crisis; those with Keynesian state interventions believe that the prospects caused by the crisis are not optimistic. There are also some scholars who hold Marxist economics positions. They believe that the root cause of the crisis lies in excess production. Although the current financial crisis we see is a currency crisis of bank credit， in essence， it is only the government that has taken improper measures to solve the problem of overproduction and finally laid the hidden danger for the outbreak of the crisis. With regard to the reasons for the outbreak of the financial crisis， the theoretical circles mainly have the following views：

2. Australian Financial Crisis

British media said that Australia surpassed the Netherlands to set a record for the world's longest period of economic growth， and is entering the 104th quarter with sustained economic growth and no recession.

The country's growth in the first quarter of this year has slowed to a weak level. In the three months to March， GDP grew by 0.3%， the lowest growth rate since 2009， which was only a 1.7% increase year-on-year. The UK economy grew only 0.2% in the first quarter.

With the construction of new ports， railways， roads and factories values at A$400 billion （approximately US$301.8 billion）， Australia has created a record-high super cycle for coal， iron ore and natural gas exports. United Kingdom “ Times” website 2001.