Victoria 's Trade Links With China Essay

704 Words Sep 11th, 2016 3 Pages
Victoria’s Trade Links with China
China as Victoria’s number top two-way trading partner and number one export destination has significant impact on Victoria’s economy. Victoria has more breadth and depth relationship with China than other states. Two-way goods trade between China and Victoria was reached at more than $20.4 billion in 2014-15 . Victoria goods exports to China valued at $4.3 billion, taking 19 per cent of exports in 2013-14 . Exports to China have rose by 30 per cent in the past four years, with meats and dairy amongst the top exports1. A broad range of Victoria’s industries benefit from export to China including wine, horticulture and seafood. In 2013 Victorian dairy farmers produced 85 per cent of Australia’s dairy exports value $2.3 billion, which cover sell to Chinese market worth $369 million2.

Price advantage is an important part of the competitiveness of products. The price of Victoria’s product enter the Chinese market is heavily influenced by tariffs. The General Administration of Customs of China announces a tariff schedule including import tariff, import value-added tax (VAT) and import consumption tax rates1. Almost all products are charged a rate of 13 per cent or 17 per cent import VAT1. A great number of commodities such as liquor, tobacco and vehicle have an import consumption taxes ranging from 1 per cent to 40 per cent1. On 17 November 2014, Australia and China signed a trade agreement called the China-Australia Free Trade Agreement…

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