Australia-China Chamber of Commerce and Industry
of New South Wales

 

 


 

Related documents:

Position paper on Sister State and Sister City Relations Between Australia and China

Chamber letter to Sister City News

Information about cities and provinces in China.

 


SPEECHES FROM THE FORUM ON

MAKING SISTER CITY RELATIONS WORK FOR THE ECONOMIC
BENEFIT OF BOTH PARTIES

12 March 2002

Sponsoring organisations:

Local Government and Shires Associations NSW (LGSA)

Australian Sister Cities Association (ASCA)

Australia China Chamber of Commerce and Industry of New South Wales (ACCCI)

 


Speech by Judd L. Webber, Executive Chairman, Australia China Alliance

Capturing Economic Opportunities With China Through Sister City Relationships

New South Wales is the economic powerhouse of Australia, and China of the Asia Pacific Region.  As such, they offer considerable opportunities for mutual commercial benefit which may be captured through Sister City relationships. 

NSW has a population of over 6.5 million and Sydney is Australia’s largest city with a population of over 4 million, roughly 1/3 and 1/4, respectively, of Australia’s total population.  Even the population of Sydney pales in comparison to many Chinese cities, and once into Regional NSW, we see a considerable disparity in size between even our largest regional cities and cities from China seeking Sister City relationships with them.

If size alone is a critical factor in the determination of potential success of a Sister City relationship, then few would succeed.  However, there are a number of commercial reasons why NSW (and Australia) and China have much to gain through the establishment of closer relationships that Sister Cities offer.

NSW accounts for 36 per cent of Australia’s total economy, and at over A$213 billion per year GDP.  NSW’s economy is equal to or larger than the national economies of many countries in our region including New Zealand, Malaysia, Philippines, Singapore and Indonesia. 

The NSW economy has grown for over 6 years without interruption, currently over 4 per cent per annum.  We have a AAA credit rating which is rare in the region. 

There are a number of reasons why over 50 per cent of Australia and New Zealand’s top 500 companies are headquartered in NSW and over 280 Regional Headquarters servicing the Asia-Pacific Region are registered in NSW:

We have a time zone which allows a business to work here in the morning while the US East Coast markets are open, lead into Asia by mid-day, and then flow into the opening of the European markets in the afternoon.

Our Asia-Pacific location has ensured a transportation network which can move products and people throughout the world, with efficiency and economy.

Served by 5 international optic fibre cable networks, we have the communications infrastructure of the 21st century in place with capacity for growth - today.

NSW has the services which business need to succeed - telecommunications, finance, IT, insurance, etc.  In fact, 80 per cent of the NSW GDP is generated by the service sector of our economy. 

NSW has 11 Universities; over 130 TAFE technical and vocational training colleges; and hundreds of private schools and institutions of higher and continuing education.  We are developing our greatest asset, our minds - and creating a wealth which will benefit not just Australia, but the people’s of the world, for generations to come.

Over 35 of Australia’s 64 Collaborative Research Centres (CRCs) bring together Government, Education and the Private Sector in targeted Research and Development which is designed to produce commercial results within commercial marketplace demands and constraints.

As a stable democratic nation, Australia has the systems in place to ensure that individual and corporate rights are protected from civil unrest, unlawful confiscation and illegal conversion by government or private individuals.  We have an open legal system which is codified, fair and subject to international obligations and scrutiny.  Cooperative governments throughout Australia allow commerce to thrive in a open marketplace. 

Perhaps our most important asset is our multicultural society.  Over 130 different nationalities make Sydney and NSW an exciting, vibrant place to live, raise a family and do business.  When my family and I became Australian citizens 5 years ago, out of 125 new citizens, 75 countries were represented! 

Did you know that nearly 1 on 4 residents of Sydney fluently speaks another language in addition to English?  It is easy to see why nearly 44 per cent of all of the international call centres in the Asia-Pacific Region are located in NSW.

Are you aware that nearly 1/4 of all residents of Sydney were 1stt generation migrants (including yours truly) or that when you consider 1stt and 2nd generation migrants, over 45 per cent of us fall into this category?  People make international business work.  Here in NSW, business gets not only a highly skilled, multi-cultural, multi-lingual, highly educated workforce, but employees who can spearhead their penetration into the markets of the world.

Our economy in NSW is built upon a rich natural resource base in timber, minerals, fishing and agriculture.

We have considerable strengths in the resources area and can supply customers not only with products and raw materials, but also with technology and information.  Resource companies may be in the metropolitan areas, but the resources are throughout NSW, and many of our local communities are reservoirs of considerable knowledge and expertise in high demand in China.

Built upon our rich resources-base economy, we have developed world-class technology and value-added manufacturing to process and refine our natural resources.  Through the transfer of this Australian-made technology we can help bring the technology to the markets of the world - to the benefit of the millions of people living in it. 

The service sector accounts for over 80 per cent of NSW’s total economic output and is our fastest growing export area.  China has a vast market for Australian expertise in legal, insurance and banking sectors; in information technology, architectural and building services, environmental protection and management consultancy.

Each year NSW exports over $30 billion of goods and services to the world and we do over $3.25 billion trade (over 10 per cent of our total international trade) with China alone, which is roughly our 5th largest trading partner in the world.  While currently our major trade exports to China are raw materials and resources and our main imports from China are manufactured goods, the trade between our countries is growing.  Also, and not recorded in these merchandise trade figures, Australian services are in great demand in China and considerable opportunities exist for increased trade in this valuable sector.

It is this stable base to our overall economy and the economic power it has brought us, which when combined with our key success factors, allows even the more modest sized NSW (and Australian) cities to enter into successful Sister City relationships with Chinese cities which may have a far larger population.  We have products, technology, services and markets China needs.  China has products, technology, services and markets we need.

In the next few decades, China will overtake the USA as the largest economy in the world.  With over 1.25 billion population, China is a market that offers Australia a partner in the Region which can benefit us both for generations to come.

In the post WTO world for China, the economy is still over 50 per cent State controlled, especially in key sectors.  In order to educate and open the eyes of Chinese government, education and business leaders, increasing numbers of delegations from China are visiting the west, including Australia, to see what we have to offer.

As relations between governments in are most respected in China, Australian business needs help from Australian governments on all levels to open doors and facilitate introductions with their Chinese counterparts.  This means hosting delegations; presenting well developed and understandable information and programs; attending receptions and events as partners with our business and trade representatives; and not least, establishing and committing to Sister City relationships where a reasonable match has been identified.

In international trade, an axiom states that “friends do business with friends”.  Large amounts of trust are involved in establishing commercial alliances due to the perception (and reality) of risk involved by both parties.  Through Sister City relationships, friendships which may initially be facilitated by government can be developed across wide sectors of our communities and become the start of positive commercial activities lasting for generations. 

Flowing-on from the above axiom that “friends do business with friends” is the concept that friends don’t go to war with their friends (or countries where they have strong economic and commercial interests).  Friends may argue and disagree, but with dialog across all sectors of both countries - on a person-to-person basis - a deeper understanding of our common interests and humanity can be developed, and international tensions can be reduced significantly.

Australia and New South Wales have tremendous strengths which are in direct demand in China as WTO modernisation takes place.  We have a strong historic trade relationship which can only grow stronger over time with the focused efforts of government, education and business to do so. 

Through Sister City relationships, not only do we have the benefits of economic growth and prosperity, but by establishing friendships across our communities on a person-to-person basis, we help improve the prospects for world peace for generations to come.

The Australia China Alliance P/L (www.australia-china.biz) is an active member of the Australia-China Chamber of Commerce and Industry - NSW (ACCCI) and has long supported the establishment of stronger commercial and social ties between China and Australia. 

To our Chinese clients, we assist them through making introductions to Australian government, education and business; organising and delivering training and educational study programs in Australia and China; facilitating trade, investment and technology transfer; establishing and maintaining Sister City relationships with appropriate Australian communities; and providing confidential consultation on a variety of personal and commercial issues.

For our Australian clients, we offer similar programs: introductions, communications, protocol, trade facilitation, targeted marketing, program development and implementation, Sister City relationship management, confidential business services, etc.

With professional, experienced assistance and a dedication to achieving results, Australia China Alliance P/L and ACCCI can assist your council develop and reap the many benefits Sister City relationships have to offer.

 

Contact information: Judd L. Webber webber@iprimus.com.au

 

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