Hasten domestic reform by inviting outside competition
Then there are broader claims. For example, some are saying that China is choosing this FTA to prove to the world that it is prepared to do business with a developed country and is dipping its toe in the water with Australia. Others believe that Chinese President Xi Jinping is using the Australia-China FTA to open up China’s economy and hasten domestic reform by inviting outside competition.
The general consensus is that the FTA is a win for Australia, China, and even the liberal economic global system on the assumption that if China is well on the way to opening up domestic sectors to outsiders.
There is much we should be excited about. Access to sectors within the Chinese services market could well offer enormous opportunities for Australian banks, insurance companies, legal firms and financial planners, especially those seeking to make hay in the potentially lucrative and vastly undeveloped Chinese superannuation sub-sectors.
Architectural and urban planning professionals will have their qualifications recognised in China. Up to 105 education institutions and training providers will be offered concessions to market directly to the Chinese market, an increase from 77 currently. And the news for our beef, wine and diary firms is also good, including for value-adding firms such as those making infant formula. Recent tariffs imposed on Australian coal will also be removed within two years.
Of course, China has won its fair share of concessions as well. For example, tariffs will be phased out on 95 per cent of all Chinese imports within four years. Important Chinese exports such as clothes, footwear, household electronics and cars will be tariff free by 2019. Investment from private Chinese firms will be exempt from Foreign Investment Review Board scrutiny for amounts of up to $1 billion. And Chinese investors will be able to have Chinese workers apply for work permits on a case-by-case basis.