The NSW-China Economic Relationship

James Laurenceson, Deputy Director, Australia-China Relations Institute, University of Technology Sydney

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1. Over the past year the value of NSW goods exports to China is $7.0 billion. This is a record high. China accounts for 16.7 percent of NSW total goods exports, and is:

• 0.7 times that to Japan;
• 2.1 times that to Korea; and
• 2.8 times that to the US.[1]

2. The annual value of NSW goods exports to China increased by $1.3 billion in the past five years.  During the same period NSW goods exports to:

• Japan fell by $448.3 million;
• Korea fell by $451.8 million; and
• the US increased by $397.5 million.[2]

3. The annual value of NSW agriculture, forestry and fishing exports to China is $1.0 billion. This compares with:

• $59.9 million to Japan;
• $26.5 million to Korea; and
• $10.5 million to the US.[3]

4. The annual value of NSW mining exports to China is $2.9 billion. This compares with:

• $7.6 billion to Japan;
• $1.8 billion to Korea; and
• $16.1 million to the US.[4]

5. The annual value of NSW manufacturing exports to China is $2.7 billion. This compares with:

• $1.2 billion to Japan;
• $957.4 million to Korea; and
• $2.4 billion to the US.[5]

6. Services exports, such as education, tourism and financial services, are a major income earner for NSW, worth $30.0 billion in 2016.[6]

There are currently 62,223 Chinese nationals studying in NSW.  This is 38.0 percent of all Chinese students in Australia, and compares with:

• 3,208 from Japan;
• 9,768 from Korea; and
• 3,391 from the US.[7]

7. NSW had 683,000 visitors from China in 2016. This compares with:

• 163,000 from Japan;
• 203,000 from Korea; and
• 426,000 from the US.[8]

On average, Chinese visitors spend $8,734 per trip, more than any other country. For example, those from the Japan, Korea and the US spend $4,417, $6,249 and $6,013, respectively.[9]

8. NSW accounted for 80 percent of Australia’s financial services exports in 2016. Australia’s financial services exports to China were worth $317 million. This is up from $49 million in 2012.[10]

9. Chinese investment in NSW in 2016 totalled $8.1 billion. This was 52.5 percent of all Chinese investment in Australia.[11]

Author

Professor James Laurenceson, Deputy Director, Australia-China Relations Institute, University of Technology Sydney