future of the Victoria–China relationship—a relationship that transcends the transactional and is built on a deep understanding of each other’s people, culture and economies; has genuine connections between governments, businesses and people at its foundation; and draws on complementary strengths to drive mutually beneficial outcomes. 254K Victorians with Chinese ancestry—including 112,000 Chinese born approximately one of the Chinese–Australian population 439K CHINESE VISITORS Estimated Chinese visitors to Victoria in 2014-15. China is the largest and fastest growing source of international visitors to Victoria over the past 5 years China’s emerging policy directions and challenges Victoria’s established and emerging capabilities Prioritising the development of innovation industries: supporting sectors to become globally competitive and the backbone of China’s future economy including biotechnology, new energy, new materials and next-generation information technology. Developing China’s West: investing in new infrastructure, providing new services (including aged care and education), encouraging foreign investment and promoting ecological development to balance development across the country. Supporting sustainable and ecological development: advancing ‘ecological civilisation’ and promoting green, low-carbon, climate resilient and sustainable development, including through a nationwide carbon trading Strengths in innovation: including medical technology and the life sciences, new energy, and advanced manufacturing collaboration can help China pivot towards sustainable growth and higher value industries. Liveability credentials: our urban design, sustainability, education, health, creative industries and new energy technology providers can partner with Chinese provinces to build cities that respond to urbanisation pressures and realise the Chinese Government’s ecological and sustainable development goals. A world-class medical sector: our health providers, medical researchers, and medical technology and pharmaceutical manufacturers representing
Medical technology, pharmaceuticals and healthcare Tariff reductions on many products, including pharmaceuticals and health products Australian providers able to establish wholly Australian-owned hospitals and aged care institutions in China Professional services Improved market access for professional services, including telecommunications, financial, construction, engineering, architectural and urban planning services Direction five: Supporting successful business engagement with China Victoria’s economy is transitioning to a more diversified industry base, bringing high value-added production and a stronger focus on services. To support economic growth during this transition and into the future, many Victorian businesses will need to focus internationally—selling the highest quality goods and services for which Victoria is renowned. Asia will undoubtedly continue to be our major consumer—the region is expected to produce half of the world’s total economic output by 2025 and China will be a major driver of this growth. Further, the historic China–Australia Free Trade Agreement and the e-commerce boom (China’s e-commerce sector recorded sales of more than half a trillion Australian dollars in 2014, a 50 per cent increase on the previous year) will provide unprecedented market access for businesses. But the Chinese market is competitive—China is the main export partner of 43 countries globally, and of many other sub-national jurisdictions, and is continuing to develop trade agreements with more partners. And despite our strong relationship, cultural and linguistic differences can pose a challenge for many businesses. It is therefore critical to equip Victorian businesses with the skills they need to successfully do business in the region and to seize specific opportunities. What are we currently doing?