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Victoria's China Strategy

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Victoria's China Strategy Victoria’s China Strategy PROGRESS REPORT 2018 OUR STRATEGY TO ENGAGING WITH CHINA That Victoria becomes China’s gateway to Australia based on the strength of our VISION connections and the depth of our understanding of each other’s people, culture and economic needs. THEMES Deeper understanding Genuine connections Mutual prosperity Victoria’s engagement Victoria will build Victoria will work with China to with China will reflect a substantive and enduring identify economic opportunities deeper understanding of connections with China at that target the intersection of the Chinese people, culture every level – between our Victoria and China’s respective and economic needs – and governments (including at comparative advantages Victoria will also work with the bilateral provincial level), and development needs to China to build a similar businesses, communities maximise the mutual economic understanding of Victoria and individuals. value of our relationship. and Australia. AHEAD OF SCHEDULE TO MEET OUR TARGETS 2016 Strategy 2018 progress 2026 baseline benchmark target 25% % % INVESTMENT 8 20 AND JOBS Victoria’s total share of Chinese investment to Australia $ 10 $ $ 6.5 BILLION 11.5 BILLION BILLION TRADE Victoria’s exports to China $ 2.7 $ $ 2.2 BILLION 3.4 BILLION BILLION VISITORS Overnight expenditure by Chinese visitors to Victoria 20,700 14,500 18,125 STUDENTS Chinese postgraduate student enrolments in Victoria Current INTRODUCTION Two years ago, we More important is what’s behind these while our deepening sister-state launched Victoria’s numbers — genuine connections and relationships with Jiangsu and new China Strategy. deeper understanding. Sichuan Province are bringing us The Strategy provided It’s those connections that make our even closer. a forward plan to relationship so special. We have already achieved so much together. support economic As Premier, I have travelled to China growth here in Victoria and in China, every year and I’m pleased to be But there is always more we can do while deepening our understanding of going again in 2018. Representing the to further strengthen our partnership. each other’s people and culture. reciprocity of our relationship, I’ve The directions outlined in the China Importantly, it was a document written also been proud to meet some of the Strategy remain our guiding principles in collaboration — encompassing the most senior figures in the Chinese as we continue to work together. views of our partners, and Government, like Premier Li Keqiang, On behalf of the Victorian Government, demonstrating a genuine dialogue. and welcome many to our state. I would like to thank everyone who has Like everything we do, this Strategy is In 2017, I was honoured to be the only helped strengthen our already strong underpinned by action and outcomes leader of an Australian state invited to partnership with China. — which is why we included ambitious the prestigious Belt and Road Forum Your efforts have been essential to ten-year targets for trade, investment, for International Cooperation, held our shared success, and I look forward visitors and students. in Beijing and based on President Xi to celebrating more of it with you in the future. I’m pleased to report that we’ve Jinping’s vision for stronger economic already exceeded our ten-year and social ties with partner states. target for more investment and A growing network of Victorian postgraduate students from China Government Trade and Investment — in just two years. And we’re well on Offices also play a vital role in The Hon Daniel Andrews MP track to exceed our other targets too. strengthening our partnerships, Premier The Victorian the past two years. This engagement Government's strong is crucial to our economy, with focus on trade and Chinese students the largest group investment ties with of international students in a sector China is delivering that is our biggest services export results for Victorians. and employs 58,000 Victorians. But In the two years it also leads to deeper engagement since we released our new China and better understanding between strategy, we have seen this most us and forges relationships that will important relationship go from last a lifetime and enrich us all. strength to strength. We have seen The success we are seeing is no more business partnerships, major accident. Maintaining any good Chinese companies like Alibaba relationship requires effort and the and JD.com choosing Melbourne Victorian Government is working hard for their regional headquarters, to grow our ties with China. To attract more research collaborations, more investment, drive new trade more cultural engagement and deals, deliver the best experience for rapid growth in exports. international students, support the International education is a great local Chinese-Australian community example of this success, with a 38 and encourage more Victorians to Melbourne's Chinatown during the Chinese New Year festival. per cent increase in enrolments in learn about and visit China. Victorian classes and courses from Chinese students over the past two years. We are also seeing more Victorian students engaging with China with a 21 per cent increase in The Hon Philip Dalidakis local students studying Chinese over Minister for Trade and Investment Victoria’s China Strategy: Progress Report 2018 3 TRADE AND INVESTMENT Trade and investment with China has experienced huge growth and is on track to exceed the 2026 targets. Underpinning this success are new investments from China, the outstanding performance of key sectors such as tourism and education, increases in trade and new opportunities in emerging sectors. The Victorian Government has facilitated strong business engagement and assisted companies to forge partnerships that are bringing more jobs to the state and helping Victoria’s dynamic economy to grow in partnership with China. MORE DIRECT FLIGHTS ENABLING MORE CHINESE VISITORS TO VICTORIA THAN EVER BEFORE 1 6 12 Beijing, Chengdu 7 and Shanghai are all top five sources of 2 travellers landing in 4 11 10 Melbourne. 8 5 3 9 Direct flights from Melbourne to mainland China 1 BEIJING 7 XI’AN 2 SHANGHAI 8 CHANGSHA 3 GUANGZHOU 9 SHENZHEN Direct flights 4 CHENGDU 10 CHONGQING prior to 2015 5 XIAMEN 11 HANGZHOU New direct flights 6 QINGDAO 12 ZHENGZHOU since 2015 621,600 Visitors from China to Victoria in 2017 — the most to visit Victoria from any country. 27% Increase in Chinese visitors since 2015 — outpacing the growth of all international visitors to Victoria in the same period (19%). >1/3 Largest share of visitor expenditure in Premier Daniel Andrews and Vice President of Air China, Wang Mingyuan, announcing Air China’s direct daily Victoria is from China — more than the flights between Beijing and Melbourne. next six markets combined. 4 Victoria’s China Strategy: Progress Report 2018 TRADE AND INVESTMENT E-COMMERCE IS A KEY PART ATTRACTING INVESTMENT TO "The growth of trade OF VICTORIA’S APPROACH TO CREATE VICTORIAN JOBS between Victoria and GROWING TRADE WITH CHINA Victoria’s share of investment from China is a credit to both E-commerce was identified as an China into Australia has already exciting opportunity for Victorian reached 25 per cent — exceeding sides — we’ve worked businesses in the China Strategy. the ten-year target in the Strategy. hard to build trusting In the last two years, Victoria This includes big investments from attracted the Australian headquarters Hisense, Huawei, Qenos, FuWah, Hind personal and economic of two of China's largest e-commerce Group, Power China, Bank of China relationships that are companies, Alibaba and JD.com, and CITIC. helping Victorian businesses to take mutually beneficial, and Most recently, CRRC – the world’s advantage of online platforms to sell largest train rolling stock manufacturer we’ll continue to do so. goods to an estimated 688 million – established its Australian Chinese internet users spending more China is changing rapidly headquarters in Melbourne to design than US$779 billion each year. and manufacture 65 high-capacity and we need to be agile to During the Premier’s 2015 visit to trains for Melbourne, creating 1,100 capture new opportunities China, Chemist Warehouse reached highly-skilled local jobs in Victoria. an agreement with Alibaba to sell its and build on recent Also, the China Investment Corporation products on a new e-commerce site. joined the Lonsdale Consortium to record growth in tourism, Chemist Warehouse is now projecting purchase 20 per cent of the 50-year-long sales of $22 million in the first year education and trade. Port of Melbourne lease. and $88 million in the second year, That is why we have the and the creation of 50 new jobs The Jiangsu Victoria Research and in Melbourne. Innovation Center will facilitate Chinese largest presence in China investment in Victorian technology And Victoria’s health and nutrition of any Australian state start-up enterprises. Chinese investors, products including Goat Soap led by the Suzhou High Technology with five strategically Australia, Swisse and Nature’s Way Town in Victoria’s sister Province all top Tmall sales charts each year. located offices." of Jiangsu, will invest $20 million to assist the development of technology Mr Tim Dillon companies in Victoria. Commissioner for Victoria to China FOOD AND FIBRE – VICTORIA’S LARGEST GOODS EXPORT TO CHINA $ WEILONG GRAPE WINE COMPANY 3.6 billion Victorian food and fibre exports to The Victorian Government has China in 2016–17 — a 24% increase been working with China’s third on 2014–15. biggest wine company to help it establish a $110 million winery in Mildura by 2019, employing more than 60 people. China is the highest value market for wine exports from Victoria, 28% valued at $121 million in 2016–17, The share of 2016–17 Victorian food and a 40 per cent increase on 2015–16. fibre exports to China — our largest market and growing (24% in 2014–15).
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