From 15–18 July 2024, the Chinese Communist Party’s (CCP) Central Committee gathered for its Third Plenum. The Third Plenum occurs approximately every five years and is typically used to introduce the Party’s long-term economic vision.

While no major policies were announced to address near-term growth challenges, the CPP reaffirmed its long-term vision of economic growth based on innovation, green energy and consumption.

This shift aligns with China’s transition from an economic model focused on investment in property and infrastructure to one centred on innovation and technology-driven productivity. The country seeks to enhance its self-reliance and strengthen its capabilities in high-end industries and workforces, particularly within the science and technology sectors.

Economic growth projections

The Third Plenum was held against the backdrop of newly released figures for China’s second-quarter GDP growth, which showed a year-on-year increase of 4.7 per cent, down from 5.3 per cent in the previous quarter.

Despite this slowdown, the International Monetary Fund (IMF) has maintained its 2024 projections for China at 5 per cent. However, the IMF anticipates that various economic headwinds will slow China’s growth rate to approximately 3.3 per cent by 2029.

Opportunity for Victoria

The CCP has underscored China's commitment to expand its global presence, signalling that the country is eager to engage with new markets and opportunities.

China’s innovation-driven economic development prioritises partnerships to advance technological development. In the past few months, China has also rolled out visa-free policies to boost tourism and business cooperation, including a 15-day visa-free policy for Australians.

Victorian businesses are already working to capitalise on the opportunities arising from China's evolving economic landscape.

Trade and investment

Amidst economic uncertainty, Chinese consumers are becoming more cautious, holding back on non-essential spending and focusing on high-quality and value-for-money products. This can present an opportunity for Victorian businesses offering good value at premium quality, including in the food and beverages and beauty, wellness and personal care sectors.

China’s 1.4 billion population offers opportunities across a range of sectors. As China seeks to enhance its food security, it is diversifying its protein sources and increasingly turning to alternative proteins. As an emerging global hotspot for food innovation, Victoria is well-positioned to service the growing demand for plant-based meat and dairy alternatives.

Victoria is also Australia’s leading health, life sciences, and biotechnology hub, making it an attractive destination for Chinese investors looking to innovate through partnerships with developed economies. Furthermore, Victorian businesses specialising in treatments, technologies and therapeutics can also achieve significant growth by entering the Chinese market.

International Education

Vocational education and training (VET) offer growing opportunities for collaboration, particularly as China prioritises enhancing its skilled labour force to support economic growth and self-reliance in strategic industries.

Currently, there are 110 joint programs between Victorian TAFEs and Chinese higher vocational colleges, with additional opportunities in joint curriculum development, faculty and student exchange programs, industry training, and building digital platforms and training facilities.

As China’s graduate job market becomes increasingly competitive, more Chinese students are seeking to study abroad to improve their employment prospects. This trend presents significant opportunities for Victorian universities to attract Chinese students through postgraduate programs and career-oriented pathways.

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 Shanghai, Beijing, Chengdu, Nanjing and Hong Kong. Our VGTIs can assist in connecting your business to distributors and other partners.

Vic House is Victoria’s dedicated multi-storey facility in Shanghai, designed to showcase Victorian products and host business-to-business (B2B) meetings with importers, distributors and retailers. It offers a free platform to support Victoria’s exports to Greater China year-round.

Looking Ahead