In 2022, China bought 1.1 billion tonnes of iron ore, 65% of which were from Australia. For Beijing, commodities from Australia are important for its efforts to revive the pandemic-hit economy. Iron ore, for example, is a vital component of its steel industry.
Iron ore, gas and coal make up the bulk of Australian exports to China (more than AUD 79 billion), but Australian service industries – led by education and tourism – are a growing part of the trade relationship.
In 2019-20, exports of iron ore accounted for 56% of all Australian goods exported to China and was a significant driver of the increase in exports between 2014-15 and 2019-20.
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.
Export volumes of iron ore lumps and iron ore fines to China jumped 24.3 percent and 17.7 percent respectively from a month earlier, data from the Australian Bureau of Statistics showed. Shipments of thermal coal to China surged 125 percent by volume in March from February, offsetting a drop in exports to Japan.
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).
What Does Australia Export? Australia's main export is iron ore, followed by their other most valuables exports coal, gold, and petroleum. These exports alone rake in $48.2 billion, $47 billion, $29.1 billion, and $20.3 billion, respectively.
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.
Barley, sorghum and other grains
Australia's trade to China in barley and sorghum is significant and growing rapidly. Key outcomes under ChAFTA include: Elimination of the 3 per cent tariff on barley and 2 per cent tariff on sorghum.
As of December 2022, the top exports from Australia to China included iron ore (US$5.48 billion), petroleum gas (US$1.65 billion), other minerals (US$1.08 billion), gold (US$742 million), and wheat (US$214 million). Australia imports 25 percent of its manufactured products from China.
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.
As of March 13, 2023, a total of 1.35 million tons of coal had been shipped from Australia to China, which marks a significant increase from 0.82 million tons the previous month.
China-Australia In 2021, China exported $70B to Australia. The main products that China exported to Australia are Computers ($4.97B), Broadcasting Equipment ($4.09B), and Other Furniture ($1.82B).
Australia is an important source of export cereals, meat, sugar, dairy produce, and fruit. Landholdings are characteristically large, specialized, owner-operated, capital-intensive, export-oriented, and intricately interlinked through the activities of producers' associations and government organizations.
Resources and energy also play an important role in the China-Australia investment relationship. China is an important source of foreign investment in Australia. Foreign investment in Australia means greater infrastructure, more productivity and more jobs for Australians.
Australia's imports of Telecommunication, computer & information services from India have risen by an average 17.9 per cent over the past ten years to be valued at $350 million in 2016. India was Australia's second largest source for these imports after the United States in 2016.
Australia is now a net importer (that is, we import more than we export) in six food categories: seafood, processed fruit and vegetables, soft drink, cordials and syrup, confectionary, bakery products and oils and fats. Some of the insights in the Story Map are surprising.
Australia exports around 72% of the total value of agricultural, fisheries and forestry production. Export orientation of each industry can vary by commodity type. Wheat and beef, which are large sectors, are more export-focused than dairy, horticulture and pork (Figure 7).