China's economic revolution is showing up all over Australia
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.