SFC Correspondent Zheng Qingting, Intern Fan Shuqing in Beijing

Despite global uncertainties, China continues to be a leading investment destination for Australian companies, according to the latest findings from the China-Australia Chamber of Commerce (AustCham China). The 2025 Doing Business in China (DBIC) Report reveals that nearly 70% of Australian firms rank China among their top three global investment priorities over the next three years, underscoring sustained confidence in the Chinese market. 

The report highlights a significant rebound in profitability, with over 75% of foreign firms reporting profits in 2024, up from 58% in 2023. Additionally, 51% of respondents recorded year-on-year revenue growth, reflecting China's robust economic scale and its leadership in innovation. These results underscore China's critical role as a hub for globally competitive, future-focused industries. 

Vaughn Barber, chair of AustCham China, emphasized in an interview with SFC that confidence in China remains strong, with three out of four foreign firms ranking it among their top three global investment destinations over the next three years.

The DBIC Report also identifies emerging opportunities for Australian businesses in sectors such as resources, agribusiness, and green supply chains. Notably, clean energy technologies, electric vehicles, and critical minerals are highlighted as areas with significant growth potential, aligning with both Australian and Chinese strategic priorities.

Looking ahead, the report suggests that Australian firms are recalibrating their strategies to deepen engagement in the Chinese market. This includes building local partnerships, expanding into new cities and regions, and investing in government affairs teams to navigate the evolving regulatory landscape. These strategic shifts indicate a move towards more integrated and value-driven business models in China.

SFC Markets and Finance: This year marks the 10th anniversary of the China-Australia Free Trade Agreement (ChAFTA). How would you assess its impact on bilateral economic and trade relations over the past decade?

Vaughn Barber: In 2015, the bilateral trade volume between Australia and China was nearly $145 billion. This year, it is forecast to reach $325 billion, representing an increase of approximately 125%, a growth rate significantly faster than Australia's trade with other global partners. This growth has been supported by tariff relief, improved market access, and enhanced trade resilience between the two nations. 

Reflecting on the 10th anniversary of the Australia-China Free Trade Agreement, I recall being in Beijing during the celebrations, where the then-Trade Minister engaged with the community to mark this milestone. This agreement was among the first comprehensive free trade agreements with major economies. On this 10th anniversary, it’s an opportune moment to not only celebrate past successes but also to consider how this foundation can drive the next phase of collaboration between China and Australia, focusing on future-oriented industries that align with the strategic priorities of both countries.

SFC Markets and Finance: In 2024, China gradually lifted trade restrictions on products like wine, barley, and lobster from Australia through consultations. How have these developments created growth opportunities for the respective Australian industries? 

Vaughn Barber: The easing of trade restrictions, the removal of impediments, and the improvement in bilateral relations have given a real injection of confidence to businesses in the sectors affected by the trade barriers we’ve seen. We’ve seen a strong rebound, particularly in wine and more broadly across agriculture. Demand for Australian products remains solid due to their reputation for quality and safety.

That said, we aren’t immune to the global backdrop—commodity prices are fluctuating, and demand in China for some Australian exports is softening. But overall, the situation is healthy. U.S.–China trade tensions are influencing Australia’s exports. Interestingly, Chinese buyers sourcing from alternative suppliers are increasingly turning to Australia—particularly in agriculture—because of our trusted quality and food safety standards.

Our report highlights new export opportunities beyond traditional cooperation areas, such as critical minerals, clean‑energy technologies, LNG, and pharmaceuticals and medical devices—all aligned with both countries’ priorities. A particularly noticeable trend is the emergence of Australian investment opportunities in Chinese agribusiness, clean energy, and food and beverage (F&B)—a fascinating development.

We surveyed both Australian and Chinese companies, and both sides identified opportunities in these areas. This marks a new trend toward a deeper level of engagement—beyond mere exporting—to creating value together in the Chinese market.

SFC Markets and Finance: What is your perspective on the opportunities and challenges facing Australian agricultural exports to the Chinese market?

Vaughn Barber: So I think the outlook is positive. I was in Shanghai recently for SIAL and spent a lot of time in the meat pavilion, where I believe Australian producers are working hard to keep up with demand for quality Australian red meat. We’ve also had approval for—I think—15 new lamb production facilities, and I met with goat‑meat producers as well.

I think it’s important for companies to stay connected to the market, adapt to consumer trends, fully utilize e‑commerce, and take advantage of advanced cold‑supply chains in place. However, it’s unrealistic to expect Australian producers to be insulated from broader shifts in consumer demand; they need to respond accordingly.

Take wine, for example: export value is up significantly even as volume has fallen. That reflects a trend toward premiumization in Asian consumption and shifts in the domestic market. Australian exporters and producers need to adapt to that.

But overall—as you said—the expanding Chinese middle class gives me optimism about underlying demand and confidence in Australian producers' commitment to meet it.

SFC Markets and Finance: Recently, Prime Minister Albanese described the U.S. decision to raise steel and aluminum tariffs to 50% as an act of 'economic self-harm. How do you view the direct and indirect impacts of U.S. tariff increases on the Australian economy? 

Vaughn Barber: The US tariff policies are disrupting global trade—driving up costs, increasing uncertainty, and impacting supply. That’s not something Australian companies want to see. Looking specifically at the impact on exporters, Australian businesses are affected by tariffs on exports to the US and, as I mentioned before, there are opportunities for Australian suppliers to potentially fill the demand displaced by retaliatory tariffs.

At the same time, they must consider the impact on third-country markets where they compete with US suppliers. For example, as US exports are squeezed out of the Chinese market, they may shift with increased intensity into other markets like Japan—creating direct competition for Australian producers and exporters.

It’s a complex disruption to trade flows and certainly not what Australian companies would prefer. But the reality is that they need to be agile. One approach highlighted in our report is that they're deepening local, in-country partnerships to better understand and respond to emerging opportunities and evolving regulatory environments.

SFC Markets and Finance: Might this situation prompt Australia to place greater emphasis on its trade relationship with China?

Vaughn Barber: I’m optimistic about the medium- and long-term outlook because of the underlying complementarity of our economies. As the report launching today shows, almost 70% of companies identify China as their top market—or one of their top three international markets. The survey results speak loudly to the dedication of Australian companies, even amid considerable global complexity and uncertainty.

SFC Markets and Finance: You've mentioned that Australia-China economic relations are entering a new phase characterized by innovation, high added value, and green, low-carbon development. How do you perceive the complementarities between the two economies in this new stage? Are there emerging sectors that present promising investment opportunities?

Vaughn Barber: The report highlights several sectors where Australia and China are strongly aligned.

First, agriculture and food & beverage—key strengths for Australia, underpinned by its reputation for safety, quality, and reliability. As I mentioned, there is strong interest from Australian companies investing in China in areas like agricultural supply-chain innovation, local production partnerships to better meet evolving consumer demand, and support food‑security goals.

Second, clean energy is a top priority: both Chinese and international firms rank it among the leading sectors for two‑way trade, investment, and collaboration. There are real opportunities for joint work on green hydrogen, renewable energy technologies, and energy storage—where Australia's resources and innovation can combine with China's manufacturing and technology strengths.

Third, biopharmaceuticals and medical devices feature prominently. One of our panelists today is from a medtech innovation firm. There's real scope for innovation in this field to meet Chinese consumers' evolving needs and expectations.

This shift—from a traditional, commodities‑based trading relationship to one that is more strategic, innovation‑driven, and economically complementary—is emblematic of the broader trend noted in the report.

SFC Markets and Finance: The report also indicates that the electric vehicle sector has huge potential. What do you think is the direction of future cooperation in this sector?

Vaughn Barber: Renewable energy and the electric-vehicle value chain—and batteries as part of that value chain—are key areas where China’s supply capabilities align well with Australia’s needs. For example, at the CCPIT Global Trade and Investment Promotion Summit last year, I emphasized that Australia welcomes Chinese electric vehicles. We don’t have domestic car manufacturing, and our consumers want functional, good‑value, affordable solutions. As of a year later, Chinese EVs are indeed delivering strong performance.

When I returned home around Christmas, several friends told me they planned to trade in their cars for Chinese EVs. That illustrates an opportunity for collaboration between Australia and China across the surrounding value chain. The Australian government has already announced the Future Made in Australia initiative. Prospective Chinese investors can now align their proposals in the renewable‑energy value chain with objectives like boosting local production, improving sovereign capability, and creating new‑economy jobs. This trend is clearly gaining momentum.

SFC Markets and Finance: Could you share how Australian businesses view China's economic outlook and market attractiveness? 

Vaughn Barber: The report paints a compelling picture of renewed confidence and a strategic recalibration among Australian companies in their approach to the China market. Nearly 70% of multinational firms selected China as their top—or one of their top three—global investment destinations.

This is supported by performance data. In 2024, 75% of respondents reported profitability, up from 58% the year before. Over half recorded year-on-year growth, compared to 51% previously. 46% talked about increased investment compared to the prio内容r year. These results highlight why Australian companies remain cautiously optimistic about China’s prospects.

A particularly interesting finding in the report is how firms are adjusting their engagement strategy in the China market: 

Building local partnerships — This approach helps firms better understand and respond to evolving policy trends and consumer demand, while making their business models more locally relevant.

Geographic expansion — One-third of respondents plan to expand into new cities and regions over the next three years. Beyond Beijing and Shanghai, the top four targeted areas are Shenzhen, Hangzhou, Chengdu, and Hainan—each offering unique policy incentives and cost advantages.

Investment in government affairs teams — There’s a growing recognition that long-term success in China depends on constructive engagement with government and regulatory bodies, enabling companies to navigate policy shifts and align with China’s strategic priorities.

Chief Producer: Zhao Haijian

Supervising Producer: Shi Shi

Editor: Li Yinong

Reporter: Zheng Qingting, Intern Fan Shuqing, Yulai Yang

Videographer: Intern Fan Shuqing

Video Editor: Li Qun

New Media Coordination: Ding Qingyun, Zeng Tingfang, Lai Xi, Huang Daxun

Overseas Operations Supervising Producer: Huang Yanshu

Overseas Content Coordinator: Huang Zihao

Overseas Operations Editors: Zhuang Huan, Wu Wanjie, Long Lihua

Produced by: Southern Finance Omnimedia Group