China's Shopping ListHere's an article on China and Australia, a trade deal being negotiated now, and go to the 11th paragraph from the top, lead is noted as on the 'list'. Who do we know in Australia has lead, LOL.
Beijing deal a price cut bonanza
Steve Lewis and Catherine Armitage
April 20, 2005
THE prices of imported clothing, sporting goods and motor vehicles are likely to fall under a planned free trade pact with China, which the Howard Government expects will deliver a $24billion-plus economic windfall over a decade.
Trade analysts have welcomed China's agreement to begin formal talks with Australia on a wide-ranging deal that could be completed in two years.
Australian businesses will find it easier to invest in China's powerhouse economy. But the heavily protected automotive and clothing industries face potential job losses and the prospect of greater competition from China's manufacturing sector.
Despite difficulties for some sectors, the deal is expected to boost Australian exports by as much as 14 per cent.
The deal will also open the door wider to a surge of Chinese investment in Australian resources projects.
China could reap its own benefit of at least $64 billion over 10 years by opening its doors to Australian companies. John Howard confirmed Chinese companies would probably get preferential access, under Foreign Investment Review Board rules, to investing in Australian resource projects.
"We are very desirous of having as much Chinese investment, both equity and direct investment, as possible and that is a point I made to the Chinese leadership," the Prime Minister told reporters in Beijing.
The prospect of liberalising trade borders has seen some Chinese firms already begin to size up opportunities for further investment in Australia.
China's largest minerals trading company, the state-owned Minmetals Corporation, said it was "excited" about the prospect. Vice-president Frank Xu told The Australian the company saw "great chances" for investment in mining products to "ship back to China".
While declining to put a dollar value on the company's investment chest for Australia, he said Minmetals was targeting "retrievable resources" with the largest rate of return and had been "looking over some of the copper assets or bauxite assets".
Iron ore, lead, zinc and nickel were also on the company's list, he said.
The company was considered a possible bidder for WMC Resources and recently looked at paying several billion dollars for Canada's biggest mining company, Noranda.
Business groups yesterday largely welcomed the prospect of talks on a free trade deal.
But the Government faces a significant challenge to win support from the influential automotive and textile, clothing and footwear sectors -- both of which face heavy restructuring if they are to prosper under the Chinese trade deal.
There were also concerns that the principles of the deal were contradictory and could lead to counter-productive exemptions because Australia was promising to recognise China both as an equal trading partner and as a developing economy.
Mr Howard refused to be drawn into discussing the impact on individual sectors.
"Negotiations will take quite a while and it's pointless to discuss the impact on individual sectors," he said.
But he conceded the formal talks would be "a very complex negotiation", with Chinese negotiators expected to adopt a hardline stance to protect the country's impoverished rural sectors.
Australia's textile, clothing and footwear sector, which already faces a lowering of tariff protection, will be the hardest hit by the proposed FTA, according to a joint feasibility study released yesterday by the federal Government.
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