Australians on ground say China economy not so bad

Growth in China's investment and factory output in August have come in below forecast, with new figures suggesting the world's second-largest economy is continuing to weaken.

Australians on ground say China economy not so badAustralians on ground say China economy not so bad

Australians on ground say China economy not so bad

But Australians on the ground in China say things are nowhere near as bad as the world is being led to believe.

 

Shanghai is China's biggest city.

 

With a population of more than 14 million, it is four times the size of Sydney.

 

It is fast-paced, and change happens quickly.

 

And the global financial hub is volatile.

 

But Shanghai AustCham chairman Peter Arkell says that volatility does not mean the economy is suffering.

 

"What's happening is volatility, of course, but it doesn't necessarily translate into flow-on impacts into the broader economy."

 

That is the message Australians right in the midst of China's economic reality want to make clear.

 

From his base in Shanghai, Z-Ben Advisors associate Nicholas Britz offers advice to Australians keen to invest in China.

 

"We are seeing a slowing of China's economy, however it's also largely a transition. So it comes down to China trying to change from a command-driven economy across into a consumption-driven economy."

 

While there is no denying the Chinese economy is weakening, it has been growing so rapidly for so long that a downturn had to happen.

 

Australians on the ground say they have no doubt the nation is resilient enough to weather the storm.

 

Peter Arkell says foreigners need to better interpret the markets and not look at the situation through Western textbooks.

 

"We need to be careful not to interpret too much of the way the Chinese stock market -- and the Shanghai stock market, in particular -- is reacting or behaving and say, 'Well, if this happened in Australia, this is what would flow on with the economy.' It's quite a different beast,* this market."

 

The Australian agribusiness company Elders says it has found just that, and China is now dominating its attention.

 

Meat exports are worth 100 million dollars a year and growing at a rate of 25 per cent per year.

 

Elders supplies 350 top-end restaurants and hotels throughout the country.

 

Its China general manager, Craig Aldous, says growth opportunity is everywhere.

 

"I've never heard the words 'doom and gloom' mentioned in China. You know, if it's growing at 7 per cent rather than 10 per cent, we really don't pay too much attention to it. It's growing, it's growing strong, and we see that directly reflected in our business. There is growth opportunity everywhere."

 

Chief executive officer David Kier has lived in China for 22 years.

 

He has worked for AustCham and brought Subway and Dominos into the country with great success.

 

He says he has not seen a consumer slowdown in his front-end businesses and is in the process of establishing a start-up business called Freedom Road Travel.

 

"We think this will grow to be an Australian-owned, China-based travel business that has offices, ultimately, in the US and other countries, very much run at an international standard."

 

AustCham's Peter Arkell says Australia needs to look at China to expand.

 

"I think we need to keep our feet on the ground, keep our wits about us, and, in doing business here, it's a very competitive market, it's a very active market, but it's an exciting market as well. It's full of potential. I'd love to see many, many more Australian businesses here."

 

Craig Aldous from Elders says he agrees.

 

"You're going to see a lot more integration of supply chains over the next 10 years between Australian producers and Chinese companies. So that's one reason why Australians need to get more involved and understand it."

 






Share

4 min read

Published

Updated


Share this with family and friends


Get SBS News daily and direct to your Inbox

Sign up now for the latest news from Australia and around the world direct to your inbox.

By subscribing, you agree to SBS’s terms of service and privacy policy including receiving email updates from SBS.

Download our apps
SBS News
SBS Audio
SBS On Demand

Listen to our podcasts
An overview of the day's top stories from SBS News
Interviews and feature reports from SBS News
Your daily ten minute finance and business news wrap with SBS Finance Editor Ricardo Gonçalves.
A daily five minute news wrap for English learners and people with disability
Get the latest with our News podcasts on your favourite podcast apps.

Watch on SBS
SBS World News

SBS World News

Take a global view with Australia's most comprehensive world news service
Watch the latest news videos from Australia and across the world