So Winston actually my colleague said he bought Australian beef after the tariff cut which is cheaper than before. What else can consumers here in China buy from the Australian imported ones which are cheaper?
Winston Wong: I think a lot, beef is probably the largest one because Australia is already the largest supplier of beef for China. I think dairy products where we can just see that the tariff will probably lower to zero in a short while; formula milk for children. Wine and all other alcohol will be lowered as well shrimps and crabs from Australia. We’ve seen a lot of them. Previously it was iron ore and steel but it is going to be a wide range of products. Some say that 90 percent of the product in the trade, The China and Australian trade will be lowered to zero over the next five to ten years.
Zhao Yang: In the report our reporter said it will be easier for Chinese direct investment in Australia, but what areas are Chinese direct investing actually focusing on.
Winston Wong: If you look at what’s going on here, a lot of Chinese have already gone to Australia to buy property. They love the local air quality and the local education quality and also a lot of Chinese are going there to buy the farms and the wineries. We will see. If you look at the SOEs, they are buying the iron ore or the energy and the mineral assets.
Zhao Yang: So Einar what are the business opportunities after this China Australia FTA is implemented? What areas are Chinese direct investment focusing on and how will it benefit the Australian economy?
Einar Tangen: It puts Australia finally head to head with New Zealand, its smaller neighbor, in terms of buying all the things we were talking about in terms of the dairy and all the things enumerated by Winston. The real opportunities are that they are getting additional opportunities, investments and agriculture. A lot of this isn’t necessarily welcome, the rise in housing prices are being blamed on Chinese investors in the major cities and things like that which is increasing the cost of living in those areas. Overall China and Australia, it’s their largest trading partner and this is absolutely right. They are looking eastward and if you look at this from a geo-political level, if you look at Australia which has always been close to Europe and the US, is now clearly economically tied its future to ASEAN and in particular in China.