China's eco­nomic rev­o­lu­tion is show­ing up all over Aus­tralia

The Pak Banker - - 6BUSINESS -

A Chi­nese eco­nomic satel­lite some 4,000 miles from Bei­jing is sig­nal­ing the na­tion's bid to re­model its growth driv­ers is mak­ing head­way.

Aus­tralian data show that China's tran­si­tion to con­sump­tion-led growth is in­ten­si­fy­ing and help­ing to boost non­re­sources in­dus­tries Down Un­der at a cru­cial time for both economies. At the same time, Aus­tralia is emerg­ing from a China-fu­eled min­ing boom and seek­ing new op­por­tu­ni­ties to pro­vide food, ser­vices and health prod­ucts to its big­gest trad­ing part­ner. "Aus­tralian ex­ports pro­vide clear signs that mid­dle-class in­comes are con­tin­u­ing to gain and pref­er­ences are shift­ing in China to­ward ser­vices and higher-qual­ity food prod­ucts," said Paul Blox­ham, chief Aus­tralia econ­o­mist at HSBC Hold­ings Plc. "The time-frame for China's tran­si­tion is large, a decade or more, and it won't be easy. But the fact it is al­ready un­der­way is pos­i­tive."

China is seek­ing to en­cour­age con­sump­tion fol­low­ing the na­tion's rapid in­dus­tri­al­iza­tion, a tran­si­tion that will force its com­mu­nist rulers to cede even more eco­nomic free­dom to its pop­u­la­tion. The shift is crit­i­cal to boost pro­duc­tiv­ity as China seeks to avoid a mid­dle-in­come trap and re­gain its place as the world's top eco­nomic power, a po­si­tion re­lin­quished in the 17th cen­tury.

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