Trade in goods and services Resources and energy make up the largest share of Australia's exports to China, with iron ore, natural gas and gold leading the way.
In 2021, Australia exported $138B to China. The main products exported from Australia to China were Iron Ore ($95.7B), Petroleum Gas ($15B), and Gold ($5.86B). During the last 26 years the exports of Australia to China have increased at an annualized rate of 17.2%, from $2.24B in 1995 to $138B in 2021.
Australia's main imports from China are manufactured goods, which were worth more than AUD 21 billion in 2018 and is led by telecommunication equipment, IT products, furniture and homewares. The entry into force of the free trade agreement in 2015 was set to broaden and deepen the trade relationship.
China remains a primary export market for many Australian products, such as coal, iron ore, and wine.
What Does Australia Export? Australia's main export is iron ore, followed by their other most valuables exports coal, gold, and petroleum.
Trade and investment
China is Australia's largest two-way trading partner in goods and services, accounting for nearly one third (32.2 per cent) of our trade with the world.
China remained Australia's largest trading partner in 2021–22, accounting for 27% of our two-way trade. Japan and Korea account for a further 18%. Many Australian companies are diversifying their export markets, and the ASEAN region now accounts for 14% of total trade.
Seafood. Australian abalone and rock lobster (including some other sea crawfish) are the leading Australian premium seafood exports to China, with exports worth $61 million and $184 million, respectively, in 2017. Tariffs on all Australian seafood exports were eliminated on 1 January 2019.
In 2021, of $151.1 billion in the U.S. exports to China, the top commodity were Machinery and Mechanical Appliances (23.9% of the total U.S. exports), Agriculture (20.9%), and Chemicals, Plastics, Rubber and Leather Goods (16.6%).
Overall, however, Australian exports to China have surged despite the curbs, rising to A$175 billion last year from A$149 billion in 2019 in large part thanks to a booming iron ore trade too vital for China's steel mills to risk disrupting.
Oliver estimates that the worst-case scenario would see Australia bruised by a 6 per cent hit to Australia's GDP, or around $83.5 million. “So far the impact is minor at a macro economic level as affected exports are around 0.3 per cent of GDP.
China has been Australia's top consumer of iron ore for decades, accounting for 80 per cent of our exports of the mineral in 2021. Export revenue has delivered long-standing profits to Australian miners and boosted the country's tax revenue.
Destinations In May 2023, China exported mostly to United States ($42.5B), Hong Kong ($20.4B), Japan ($12.5B), South Korea ($12.3B), and Vietnam ($11.1B), and imported mostly from Taiwan ($15.1B), United States ($14.3B), Australia ($13.6B), South Korea ($12.8B), and Brazil ($12.5B).
China is the largest trading partner to Japan, South Korea, Vietnam, and Taiwan. Given their proximity, those countries are hardly a surprise. But it is also the top trader with Russia—and Ukraine. In Africa, China is the top partner for countries like South Africa and Kenya.
Still, Australia has been one of the major suppliers of beef to China, despite a decrease. In 2022, Australian beef exports to the Chinese mainland dropped 2 percent year-on-year to 175,127 tons, according to Meat & Livestock Australia.
WHAT DID THE REPRISALS INVOLVE? China issued verbal instructions to buyers to avoid Australian goods such as coal and cotton, and imposed anti-dumping tariffs on barley and wine.
China increasing beef intake in 2023, taking about 20% of the Australian market share.
Australia has plentiful supplies of natural resources, including the second largest accessible reserves of iron ore in the world, the fifth largest reserves of coal and significant gas resources. For a long time, commodities have made up a sizeable share of our exports.
Individuals income tax. Individuals' income tax is the single most important source of government revenue. Since the mid 1970s it has consistently raised around half of the Australian Government's tax receipts and continues to be a stable and predictable source of revenue.
Yearly Trade
The most recent exports are led by Iron Ore ($118B), Coal Briquettes ($54.3B), Petroleum Gas ($39.2B), Gold ($17.6B), and Wheat ($7.36B). The most common destination for the exports of Australia are China ($138B), Japan ($47B), South Korea ($29.4B), India ($20.5B), and Chinese Taipei ($13.2B).