TRADING WITH CHINA: UPDATES AND TIPS
China has been in the news during late 2024 due to the lifting of trade impediments on Australian lobsters, after already easing their restrictions on our wine, timber, beef, coal and barley.
But there is a lot more to know about doing business with this huge market – and that is where we come in. Colless Young has a well-established network of agents in China, so no matter whether you are an importer or exporter, we have the right contacts to introduce to you.
We understand the correct way to go about establishing relationships with Chinese business people, finding the right channels for your exports as well as assisting with your imports right from the source.
Most importantly, we handle your shipments by sea and airfreight with skill, care and familiarity of the cargo facilities in China.
China is Australia’s largest two-way trading partner, accounting for 27% of our goods and services trade last year. This was an increase of 9.2% over the previous year, totalling $326.9 billion. Exports made up $218.8 billion of this – nearly a third of our total global figure.
Increased engagement between Australia and China has led to positive developments in the trade relationship and the China–Australia Free Trade Agreement (ChAFTA) has unlocked significant opportunities.
You should be aware, however, that the tariff-cutting benefits of FTAs do not happen automatically. If you want to benefit from the deal, talk to us about the documentary requirements. You need to have an FTA-specific Certificate/Declaration of Origin (CoO/DoO) to identify the goods and determine that they meet the rules of eligibility for preferential tariff treatment.
Tips for those visiting China
Currency in China can be confusing. Some call it RMB, short for renminbi, while you may also hear people refer to it as the ‘yuan.’ CNH is used for international trade, while CNY is used for domestic payments.
Tips for Importers
Our agents may be able to point you in the right direction for locating suppliers of new products. A good place to start is the Canton Fair, which is held twice a year, and dates of the second fair for 2024 are 15 October to 04 November. The first fair for 2025 will run from 23 April to 05 May. Ask us for advice on how to register as a visitor and get your letter of invitation.
Tips for Exporters
Australian traders are often focused on establishing business to business relationships that are more transaction based, whereas dealings in China are more personal. It is very important to understand that developing long term relationships is generally viewed by the Chinese as an essential part of doing business.
Australian exporters who visit China may feel confused when their Chinese counterparts take them to fancy restaurants, luxury short sightseeing tours, and give them special VIP treatments – all before getting business matters settled. It is important to recognize that the Chinese custom is to network first and negotiate later.
Identify who is the true decision maker. For Chinese companies, the capacity of managers to make decisions is based on hierarchy. If the “big boss” has a strong personal relationship, then all other people in the company will necessarily fall in line.
Colless Young helps Australian companies and individuals familiarise themselves with local market conditions in China. We take care of all your logistics needs with expertise, and assist in developing import and export opportunities through a range of offshore and Australian-based services.
For more information about international shipping and trade – whether with China or any point around the globe – talk to us here at Colless Young.
Contact Andrew, email enq@collessyoung.com.au Tel: +61 7 3890 0800.
