Canberra quenches Beijing’s energy thirst

In the past five years Australia-China trade has grown exponentially, making China Australia’s No 2 trading partner after Japan. The two-way trade that was worth A$14 billion (US$10.4 billion) five years ago had almost trebled by 2005, reaching close to A$38 billion. Last year alone there was more than 40% growth over the previous year. If the present rate of growth continues, China will soon overtake Japan as Australia’s top trading partner.

The growth in trade is primarily driven by China’s vast appetite for natural resources, of which Australia has emerged as a key

supplier. Iron ore alone accounted for about one-third of Australia’s total exports to China last year. While Australia also supplies coal, copper ores and other resources to China, one of the biggest-ticket items from now on will be liquefied natural gas (LNG).
Asia Times