05 June 2023, Mumbai
Quick background; A significant portion of the transactions inked at the China Clothing Textile Accessories Expo 2022, which was held in Melbourne from Tuesday to Thursday, indicate that Chinese and Australian businesses perceive a better potential for collaboration in the primary sector of bilateral trade of textiles.
152 businesses participated in the three-day expo, which was co-hosted by the Jiangsu Department of Commerce and the China Chamber of Commerce for Import and Export of Textiles (CCCT).
During the first two days of the event, up to 2,810 business people attended, the majority of them being Australian clients, according to CCCT.
Business & economic ties
The event was declared successful by Cao Jiachang, the chairman of the CCCT, based on the feedback from exhibitors and the active engagement of the attendees of the expo.
Deals were closed during the event in large numbers, and more are anticipated. For instance, a company from Shaoxing, a center for the textile industry in East China's Zhejiang Province, signed contracts worth a combined total of roughly $6.5 million on the first day.
Ma Ying, general manager of the domestic textile and fashion company HBT Garment, was one of the event's busiest attendees. Ma discussed potential business transactions with Australian clients frequently, as she had in earlier meetings. Ma's partners have made up the majority of the clients throughout time.
Due to an outbreak, they were unable to meet for three years, but it did not prevent them from agreeing on orders, which, according to Ma, demonstrates the confidence Australian customers have in China's high-quality products.
Global supply chains
Australians are becoming more familiar with Chinese textiles, not only because we are pioneers in the development and use of sustainable and recyclable fabrics, but also because of China's seamless supply chain and effective business practices, which are more competitive than those of many other nations, according to Ma.
Following high-level conversations at the G20 Summit in Indonesia, tense bilateral relations will start to loosen up.
Dialogue
Regular high-level discussions between the two nations have resulted in a major improvement over the impasse that has existed since 2019, according to experts.
After reaching a low point, China-Australia relations are now steady and improving, which inspires tremendous confidence in the two nations' business and commercial communities, according to Cao.
Reality check
Australia is a net importer and consumer of goods that require a lot of labor because of its enormous landmass and small population.
For instance, Australia imports apparel and textiles worth more than $10 billion annually.
China is the greatest source, making up around 60% of the total, much exceeding its share of the global market by value, which is 38%, according to Cao.
Trade dynamics
Despite the epidemic, the trend remained relatively unchanged. Australia imported clothing and textiles worth $6.82 billion from China in 2021, a 13.3 percent rise from the previous year.
Australia imported $6.02 billion worth of goods from China in the first three quarters of the year 2022, up around 22% over the same period last year. According to Cao, this year's imports are predicted to be significantly higher than those of 2021.
Construct
Wool and cotton, the primary raw materials for textiles and apparel, are two of Australia's largest exports, demonstrating the resource-based economy of both nations, according to Cao.
Give & take
Always, breaking something is simpler than making it.
Who will gain
Someone loss is someone gain; The Economic Cooperation and Trade Agreement between India and Australia came into effect on December 29, 2022.
The two nations' business relations as well as the full range of goods and services are set to profit from this agreement, which is the first trade agreement between India and a developed nation in recent memory.
India-Australia trade can hit $50B in 5 years
Sam appreciated the Ministry for finalizing the Indo-UAE trade and Indo-Australian trade agreements within a short span of time.
Such agreements reflect the trust created by India amongst various trade partners such as the UK, Canada, and other countries. The estimated bilateral trade of $50 billion between the two countries in five years would enable India to import high-quality cotton from Australia and export high-value-added textiles and clothing products to the country.
Kickers
He also appreciated allowing duty-free import of around three lakh bales having staple lengths 28 mm and above from Australia under the ECTA.
Earlier, an industry delegation comprising Members of the National Committee on Textiles and Clothing (NCTC) had requested the textile ministry to allow duty-free cotton imports to enhance cotton textile export to $16.963 billion and total textiles and clothing exports by 6 percent to $47.029 billion during the financial year 2022-23.
However, significant progress can be made rapidly as long as both parties/Australia-China are sincerely eager to mend the relationship, according to Chen as after all there are no permanent friends or foes in business and trade.
