With the G20 now behind us, two pieces of news about trade and investment between Australia and China are still widely being discussed in the media.
Firstly, Australian Prime Minister Tony Abbott and Chinese President Xi Jinping finally announced the conclusion of negotiation for the historic China-Australia Free Trade Agreement. With many tariffs and restrictions being removed gradually within the next several years, trade and investment opportunities are created for businesses from both sides of the agreement.
Also, privately-owned Chinese companies are allowed to invest up to AU$1.078 billion in non-sensitive sectors in Australia.
In addition to that, Sydney has become an offshore settlement hub for Chinese Renminbi (yuan). The People’s Bank of China has also appointed Bank of China’s Sydney Branch as the official clearing bank for yuan transaction in Australia.
It allows organisations from both countries to use yuan directly in cross-border transactions, which is much cheaper, easier and less risky.
This major step forward in the bilateral relationship between Australia and China not only strengthens the financial linkage and cooperation between both countries, but also boosts both investment opportunities and confidence.
We expect to see more and more Chinese companies expanding their business into the Australian market.
Polyglot Group has a strong track record of working with international companies from China that are investing in Australia. We offer our knowledge of the local market to assist Chinese organisations from start-up to maturity.
To find out more about our Chinese Desk and Solutions we are able to provide (from Company registration to HR and Payroll Outsourcing, Recruitment, Translations, etc), please contact our Chinese Desk Manager Kitty Chen.