Building partnerships with China for over 150 years.
China remains Victoria's largest export market. It is home to the world's largest population and a booming middle-class; there is an increasing demand for premium goods, services, and knowledge, which has opened up key opportunities for Victorian businesses to establish valuable trade partnerships with China.
Market snapshot
New and emerging opportunities for Victorian businesses continue to grow as the Chinese economy diversifies into new consumer segments.
With five Victorian Government Trade and Investment (VGTI) offices in China, we continue to support Victorian businesses to participate in trade shows in China to promote their goods and services.
Greater China Insights Spring 2024
Trade with China continues to improve
Australia-China trade relations have continued to improve. Since January 2023, China has gradually lifted restrictions on Australian exports of wine, barley, beef, timber, coal, seafood and cotton.
On 10 October 2024, the Australian Government announced that an agreement had been reached with China to end restrictions on Australian live rock lobster exports by the end of the year.
Lobster was the last agricultural commodity to remain barred from the China market since select restrictions on Australian exports were put in place in 2020.
Global Victoria will continue to work closely with the Australian Government and relevant industry bodies to ensure Victorian businesses are well-informed of market requirements and can realise commercial opportunities across Greater China.
Spotlight on Sichuan Province
Victoria has a strong and deep connection to Sichuan, which was formalised with a sister-state partnership arrangement in 2016.
Victoria was the first Australian state to establish a Victorian Government Trade and Investment (VGTI) office in Sichuan province’s capital Chengdu in 2013, which is led by Victoria's Deputy Commissioner to Greater China Lucy Du.
Located in the southwest of China, Sichuan is China’s second largest province (excluding autonomous regions) by land mass and boasts a population of over 83 million. It is also one of China’s fastest growing provincial economies. In 2023, Sichuan’s nominal Gross Domestic Product (GDP) surpassed A$1.24 trillion, with a growth rate of 6% year on year.
Building on its sister-state relationship, Victoria has deep trade links with Sichuan province. Victorian businesses and their activities in Sichuan and Southwest China are supported across a wide variety of sectors by the Chengdu VGTI office.
Consumer Goods
Sichuan province’s growing household income and retail sales offer strong opportunities for Victorian exporters, including for Victorian businesses offering premium quality products in the food and beverage and beauty, wellness and personal care sectors.
In 2023, retail sales of consumer goods in Sichuan increased by 9.2% to reach A$550 billion and 813 brands opened their first stores in Chengdu alone.
Chengdu is also a commercial hub in Southwestern China, particularly in cross-border e-commerce. The city has prioritised developing local services and facilities in this sector, with the goal of driving transaction volumes to exceed A$29 billion by the end of 2025.
The Victorian Government is supporting Victorian exporters to realise this opportunity and boost market presence across China. A dedicated Victorian Pavilion showcased 15 Victorian Beauty, Wellness, and Personal Care brands at the third West China Cross Border E-Commerce Expo in Chengdu, held from 12-24 September 2024.
Digital Gaming
Victoria and Sichuan share expertise in the digital gaming sector, with the world’s most played and top-grossing mobile multiplayer online battle arena (MOBA) game, Honour of Kings, developed in Chengdu.
The city is home to over 7,000 gaming companies, including Perfect World, IGG, Qingci Games and Tencent. In 2022, the revenue of Chengdu’s gaming and associated industries reached A$12.5 billion, accounting for one-eighth of the national gaming industry revenue.
As Australia’s digital gaming hub, Victoria is an attractive destination for Chinese companies looking to innovate through international partnerships.
Sports
Victoria and Sichuan also share thriving sports cultures, with Chengdu’s sports industry valued at over A$31.6 billion (more than 2% of Chengdu’s regional GDP).
Chengdu has ambitions to become a world-class city for sporting events and the Chengdu Sports Bureau aims to hold more than 50 national and international events each year, including the 2025 World Games.
Melbourne’s renowned sporting reputation leaves Victorian businesses and institutions well placed to provide expertise in sports and event management, sports tourism, training, and other related services.
International Education and Research
Sichuan is renowned for its high research output and is home to 139 higher education institutions including universities and higher vocational colleges. These present significant opportunities for Victorian institutions in international engagement and attracting students for postgraduate pathways.
Sichuan remains a strong partner for Victoria in international education and research.
Numerous Victorian institutions have established formal partnerships, such as:
- the University of Melbourne (UoM) and Sichuan University’s joint Mental Health Centre at the West China Hospital of Sichuan University
- vocational training partnerships in fields ranging from Construction to English Language
- sister-school and student exchange arrangements.
Victorian Government support
Global Victoria continues to support Victorian businesses ready to enter the Chinese market through an established network of five Victorian Government Trade and Investment (VGTI) offices in Chengdu, Shanghai, Beijing, Nanjing and Hong Kong.
Victoria also showcases Victorian products and hosts business-to-business (B2B) meetings with importers, distributors and retailers at Vic House, a dedicated multi-storey facility in Shanghai.
Vic House offers a free platform to support Victoria’s exports to Greater China year-round and our VGTI offices across the country can assist in connecting your business to distributors and other partners.
Previous Regional Insights
Key industries of opportunity for Victorian exporters
Food and fibre
Victoria is Australia's largest supplier of food and fibre products to China. Since the China-Australia Free Trade Agreement (ChAFTA) took force in 2015, significant export barriers have been removed, and Victoria's agribusiness sector is well placed to boost sales to China by exporting their premium food products and beverages.
International education
International education is one of Victoria's major service-based exports. Our reputation as one of the world's most liveable cities, combined with our leading educational institutions, make Victoria a highly ranked option for Chinese families and students who continue to seek the globally-recognised education opportunities that Victoria offers.
Medtech, pharma and healthcare
With an ageing population and the implementation of healthcare reform, China's high demand for healthcare services provides key opportunities for Victoria's medical, pharmaceutical and biotechnology businesses.
Victoria's reputation as a world leader in medical technologies and pharmaceuticals places Victorian businesses in a strong position to address China's healthcare needs by exporting innovative products, knowledge and supply-chain solutions.
Tourism
With nine airlines offering direct flights to Melbourne from China, the number of Chinese tourists visiting our shores prior to the COVID-19 pandemic, increased by record numbers.
Transport and construction technologies
China is seeking to develop its hi-tech and innovation industries. Victorian businesses with expert knowledge and skills in building high-quality, innovative infrastructure have substantial export opportunities in engineering, specialist design and the advanced materials industries to meet China's infrastructure requirements.
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