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Speaker 1: Welcome to Ask Fear and Greed, where we answer questions

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Speaker 1: about business, investing, economics, politics and more. I'm Adam Lang

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Speaker 1: and hello Sean Almer.

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Speaker 2: Hello Adam Lang or Shawn.

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Speaker 1: Today's question with Prime Minister Anthony Alberanezi in China meeting

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Speaker 1: President Jijingping. How reliant do you think we are on China?

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Speaker 2: Very very very very very reliant A lot, and that's

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Speaker 2: us Fear and Greed for the day. Move on now.

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Speaker 2: I did some research on this one because there's numbers

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Speaker 2: and then there's culture. So China is Australia's largest training partner.

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Speaker 2: It buys almost a third of all Australian exports. That's

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Speaker 2: about three hundred billion dollars worth of value. It is

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Speaker 2: the top overseas market for many Australian goods and services.

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Speaker 2: We talk about iron ore, gold is another one. Education

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Speaker 2: services I think fits in there. Yeah, it's massive, definitely.

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Speaker 2: While resources and energy make up the largest share. It

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Speaker 2: is changing because as the Chinese economy develops and consumption

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Speaker 2: habits of the middle class change, we're seeing growth in

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Speaker 2: other things like premium agricultural exports. The great example is

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Speaker 2: Penfolds wine. So when Beijing put prohibitive tariffs on Australian wine.

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Speaker 2: We stopped selling effectively, Treasury wine estates, signes, Penfiles stopped

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Speaker 2: selling to China. They came off. Those sales have rebounded

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Speaker 2: hugely and Penfolds has been Treasury win estates, but the

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Speaker 2: Penfold brand is what's been sold and Chinese like buying

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Speaker 2: expensive Australian wine. There's also stuff like finance, health, aged care,

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Speaker 2: professional services. We are increasingly exporting those sorts of products

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Speaker 2: to China. Yeah, so that's kind of the trade side.

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Speaker 2: There's also the foreign investment side. China is a really

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Speaker 2: important source of foreign investment in Australia. Chinese money by

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Speaker 2: assets here. Now it is controversial and you know, the

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Speaker 2: least on the Port of Darwin, particularly controversial at the.

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Speaker 1: Belton Road initiative as it was called for some time.

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Speaker 2: Yeah, yeah, that, but just take a step below that. Sure,

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Speaker 2: and there's a lot of Chinese money coming into Australia,

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Speaker 2: which is a great thing. You know, it's got nothing

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Speaker 2: to do with the Chinese government.

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Speaker 1: Yep.

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Speaker 2: China's Australia's thirteenth largest investor, invest about seventy three billion

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Speaker 2: dollars last year. When that happens you've got more money

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Speaker 2: flowing gress, you get greater infrastructure that actually improves productivity.

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Speaker 2: It creates jobs for Australians. And that's the that's according

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Speaker 2: to the Department of Foreign Fairs and Trade. That's not

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Speaker 2: me saying it, that's defact saying that. So it's a

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Speaker 2: really good thing. Australian bususinesses are increasingly choosing to enter

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Speaker 2: the Chinese market with success, so banking wealth management, some

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Speaker 2: of our wealth managers have done really well investing directly

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Speaker 2: into China. We also have increasingly a bunch of common

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Speaker 2: interests in multilateral and regional forums. So we're both part

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Speaker 2: of the G twenty for example, we're both part of

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Speaker 2: the Asia Pacific Economic Cooperation Unit. We have a free

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Speaker 2: trade agreement that augments the high level by lateral mechanisms

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Speaker 2: already in place between the two countries. Now Xijing Ping

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Speaker 2: Anthony Aberzi, we're talking yesterday saying we need to ensure

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Speaker 2: that we keep these things in place. And was they

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Speaker 2: didn't talk Donald Trump's name wasn't mentioned at least officially

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Speaker 2: as far as we know, and to talk about the

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Speaker 2: US putting pressure on Australia. But what they were talking

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Speaker 2: about is just push through all that noise and actually

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Speaker 2: remain at least trading friends. There's that, Then there's the

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Speaker 2: other one, which I like to think about, it's the intangibles.

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Speaker 2: So it's culture, you know, it's food, it's lifestyle. So

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Speaker 2: the university I went to, and this is many years ago,

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Speaker 2: admittedly had a large number of Chinese students and it

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Speaker 2: just was a richer university as a result of it. Now,

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Speaker 2: I'd imagine that's even more so today because I'm sure

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Speaker 2: there's many more Chinese students and international students. More generally,

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Speaker 2: you just end up with a richer society. And I'm

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Speaker 2: I'm a huge like I'm not a fan of borders,

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Speaker 2: to be perfectly honest, I'm a huge fan of people

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Speaker 2: being able to migrate across countries, and particularly people who

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Speaker 2: are less privileged than we are. But I just think

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Speaker 2: that we totally rely financially on China, but there's a

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Speaker 2: bunch of other things that we really rely on them

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Speaker 2: on them for as well.

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Speaker 1: That's really interesting. So they buy a third of our stuff,

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Speaker 1: a third of our exports. They're the thirteenth largest investor

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Speaker 1: in Australia, and there's many more benefits than that.

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Speaker 2: Yeah, absolutely so. I mean, Haroline, are we on them?

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Speaker 2: Very very very If you know all the discussion about tariff's,

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Speaker 2: will they affect Australia out well, most of the experts say, well,

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Speaker 2: not really directly, but indirectly. If China gets hit, that'll

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Speaker 2: slay China. Now that hurts us, so we you know,

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Speaker 2: our economy is so tired to China more than any

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Speaker 2: other country in the world.

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Speaker 1: That's great. Thank you very much, Sean.

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Speaker 2: Thanks Adam.

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Speaker 1: If you have your own question for Fear and Greed,

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Speaker 1: jump onto the website Fearangreed dot com dot au or

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Speaker 1: send it through on any of our social media platforms.

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Speaker 1: I'm Adam Lange and this is us Fear and Greed.

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Speaker 1: Have a great day.