Photo: Australian Prime Minister Anthony Albanese with Chinese President Xi Jinping at the Beijing’s Great Hall of the People on 15 July 2025

The cornerstone of the Australia-China trade relationship lies in their complementary economic structures and resource bases. Australia, with its abundant mineral and energy resources, has long supplied the raw materials needed for China’s rapid urbanization, industrial growth, and infrastructure development.

Over the past five years (2020-2024), trade between Australia and China has remained robust and diversified, encompassing key sectors such as mining, agriculture, and services. Despite occasional diplomatic tensions, the economic partnership between the two nations has demonstrated resilience and adaptability.

Overview of bilateral trade

In 2023–24, bilateral trade reached approximately $325 billion, underscoring China’s position as Australia’s largest trading partner. During this financial year, Australia exported approximately $190 billion worth of goods and services to China.

Mineral and resources

Iron ore, a cornerstone of Australia’s exports, shipments to China were valued at around $100 billion in 2023–24, accounting for nearly 60% of Australia’s exports to China.

Trade restrictions on Australian coal were fully lifted in March 2023, leading to a sharp rebound in exports. In 2024, Australia exported 83.24 million metric tons of coal to China, a 59% year-on-year increase, with a total value of $12.5 billion.

Australia is also investing in “green iron production initiative,” aligning with China’s goals to decarbonize its steel industry by 2030 and achieve full carbon neutrality by 2060.

Agriculture, Fisheries, and Forestry    

In 2022, Australia achieved a record $78.1 billion in agricultural exports, with China being the largest single market valued at $15.1 billion. Tariff restrictions on Australia’s wine, some as high as 218%, were ended as of March 2024.

In the quarter ended 30 June 2024, wine exports surged approximately 8,300% in value and 675% in volume, representing a year-on-year increase of 8,189% in shipments.

Restrictions on live rock lobsters were lifted in December 2024, marking the final removal of trade barriers imposed since 2020-21. China resumed routine quarantine inspections in the same month and gradual shipments of lobsters recommenced shortly thereafter.

Education, Tourism, and Professional Services

In 2023-24, Australia earned $51 billion from international education exports. Payments from Chinese students (tuition plus living expenses) made up a significant portion, accounting for 91% of 2019 levels by 2023.

According to the Department of Foreign Affairs and Trade (DFAT), education related travel services to China in 2024 were valued at $12.7 billion. Inbound tourism from China has also resurged after the Covid-19 pandemic, nearing the pre-pandemic levels.

In early 2024, 2.8million Chinese visitors arrived in Australia, a 30% year-on-year increase, and generated over $9 billion in income for the Australian economy. DFAT reports show that travel services (visa, transport, accommodation ect.) remain a key driver in tourism services.

Business, professional and other services exported to China include construction, engineering, securities, environmental, forestry, IT, scientific, and consulting services. In 2024, non-travel services exports to China (such as business and professional advice) were estimated at approximately $1.2 billion.

Concluding Remarks

Despite geopolitical challenges, the trade relationship between Australia and China has shown strength and resilience, with both nations working to resolve disputes and enhance cooperation.

This trade partnership plays a pivotal role in Australia’s economic growth, supporting jobs and contributing to regional development.

In an increasingly complex and challenging world trade environment, Australia is also exploring opportunities to diversify its export markets with a growing focus on Southeast Asian Nations (ASEAN) and reduce over-reliance on any single trade partner, whether China or the USA.