Guy Barnett (Tasmania, Liberal Party) Share this | Link to this | Hansard source

Firstly, I seek leave to table my report on the 15th Australian delegation to the People’s Republic of China on behalf of the Australian Political Exchange Council.

Leave granted.

I was most fortunate to be nominated as the delegation leader for the 15th Australian delegation to the People’s Republic of China on behalf of the Australian Political Exchange Council between 28 June and 7 July this year. Our delegation was hosted throughout our visit by the All China Youth Federation, and on behalf of our delegation I sincerely thank them. We visited the Guangdong and Hubei provinces and Beijing. Special thanks should be extended to those who accompanied our delegation throughout the visit and provided tremendous guidance and assistance: Mr Wang Weizhong, Deputy Director of the International Department of the All China Youth Federation; and Mr Tang Hao, Program Officer of the International Department.

All my colleagues on the Australian delegation were a tremendous support to one another. They included Mr Andrew Conway, senior adviser of the office of the Hon. Chris Pearce MP, Parliamentary Secretary to the Treasurer; Mr Mark Powell, Federal President of the Young Liberal Movement of Australia; Mr Ben Wyatt MLA, state member for Victoria Park, Western Australian Legislative Assembly; Mr Mark Butler, Secretary of the Liquor, Hospitality and Miscellaneous Workers Union South Australian branch; Ms Bridget McKenzie, Junior Vice President of the National Party of Victoria; and Mr David Wilson, accompanying officer of the Australian Political Exchange Council. I would like to thank all the members of the delegation for the camaraderie and indeed the success of the delegation in China. We not only worked hard but enjoyed the experience, each of us now with memories we will cherish.

I would like now to share from our experience. The Australia-China relationship has never been closer and stronger. The relationship, which officially commenced in 1973, is based on mutual respect, recognition of our shared interests and differences and a desire for peace, social stability and economic growth and prosperity. This close relationship, along with others, positions Australia extremely well to play an influential and constructive diplomatic role through China, the United States and Japan, but especially through China, in dealing with the nuclear crisis involving North Korea. Australia is one of the few countries to have diplomatic relations with North Korea.

Evidence of our healthy relationship with China is Prime Minister the Hon. John Howard’s seven visits to China in the past 10 years. Premier Wen of course had visited Australia recently, in April just this year, when 12 government-to-government agreements and memoranda of understanding were signed, including one relating to the transfer of uranium and nuclear technology.

President Hu Jintao visited Australia in October 2003, where he addressed a joint sitting of both houses of parliament—an honour bestowed on only a few. As a participant, I certainly remember that event very well. China is now the second-largest economy in the world, with growth of nearly 10 per cent per annum in the past three decades. Australia’s exports to China have quadrupled in the past 10 years, and China is now Australia’s second-largest trading partner. Australia’s exports to China in 2005 were $16 billion. On the whole, our economies are complementary.

The relationship benefits in other ways, including through the 81,000 Chinese students enrolled in our educational institutions each year. That is the largest source of foreign students for Australia and is worth approximately $6 billion per annum. There are 285,000 tourists to Australia per annum, there are 66 sister cities or like relationships and there are 800,000 Chinese living in Australia. The average income per person in China has increased from approximately $US225 to $US1,700 per annum, although for people in the urban areas of China it is closer to $US3,000 per annum. These figures underpin the thesis that China is a nation of two economies, city and rural.

As a specific area of interest for the delegation, the Australia-China free trade agreement certainly stands out. The negotiations are now under way, as we all are aware, and may take years, although the Chinese government, and specifically Premier Wen, is hopeful of an early conclusion to the negotiations. Our major exports to China include iron ore, wool, coal, bauxite and sugar as well as educational and other services.

In respect of North Korea, the delegation was advised that China wishes to achieve denuclearisation of the Korean Peninsula and to use the current six-party talks to achieve further progress. Government officials expressed concerns about the lack of sincerity in the talks by the US and about the lack of sincerity by North Korea, leading to a lack of trust by both sides. While North Korea has now dramatically increased the stakes with the nuclear tests today, at the time of our delegation visit in late June and early July the North Korean regime actually launched several missiles. Chinese government and other officials said that the missile launches were very unfortunate because they put China in a very difficult position—and surely a position that must be compounded tenfold.

North Korea is isolated, and its trade is very small—some $US3 billion—so, according to one Chinese official, economic sanctions are completely pointless. I want to place on record my support for the action and statements today of our Prime Minister, John Howard, and our foreign minister, Alexander Downer, of calling in the North Korean ambassador and condemning the nuclear tests as destabilising and reducing security in the region. Our support for chapter 7 sanctions by the UN Security Council appears entirely appropriate. Minister Downer made the point that North Korea’s decision was to treat China extremely shabbily. He said that North Korea had humiliated the Chinese, as the Chinese were working intensely to stop the tests. Eighty per cent of North Korean aid is from China and 50 per cent of their trade is with China. Australia has an important role to play to achieve a peaceful resolution.

China is now the world’s second-largest economy and the third-largest trading nation. China’s economic growth has averaged just under 10 per cent over the last three decades, but that is expected to decrease to around seven to eight per cent over the next five to 10 years. There are very little or no social security arrangements in place, and the lack of health, education and infrastructure in rural and western China is one of the major challenges facing the country in the years ahead. One of the economic challenges facing China throughout this century is how the country makes the transition from a developing economy to a developed economy. It appears that China is working on 40- to 50-year time frame and is acutely aware of the economic power it could become.

It appears that China is undergoing or has undergone a redefinition of communism. There is a move away from state owned enterprises to state owned capital. Additionally there is a concerted effort from the central government to encourage private share ownership and financial literacy. These are tangible examples of the shift away from traditional communist ideology to the pursuit of state encouraged entrepreneurialism. One of the highlights was the visit to the Three Gorges Dam project in Yichang. It was a highlight for all our delegation but particularly for me as a Tasmanian senator. The sheer size of the project was amazing. The total land area inundated by the dam reservoir is 632 square kilometres, which is spread over 20 counties belonging to Shongqing and Hubei provinces. Water will inundate two cities, 11 counties and 116 towns. The total population to be relocated is a little over 1.1 million people. Over 360,000 of these people are farmers and their families. Many have been relocated to cities far away such as Shanghai. About 45 per cent of the total project’s investment has been allocated to relocation costs. In summary, the dam is 2,335 metres long, 115 metres wide at the bottom and with the crest at elevation of 185 metres. It is truly an amazing construction.

All government officials agree that the Beijing Olympics will provide an opportunity to showcase China to the world. Concerns include the environmental pollution, traffic and heat. China has a lot to learn from Australia in exploiting the economic benefits from the Olympic Games. The Beijing 2008 Olympics will have a significant impact on China’s social development and will be an education experience. In conclusion, I again thank the Australian Political Exchange Council for this very fine honour and for the opportunity to be there with other members of the Australian delegation. Thanks again to the All China Youth Federation for hosting our delegation and for making the delegation experience such a success.