Fu Ying, the chairwoman of the Foreign Affairs Committee of the National People’s Congress, said some sectors of China’s economy, such as the dairy and meat industries, were concerned about how the deal would affect them.
Australian dairy and meat companies will compete on a more level playing field with Chinese firms if the deal goes ahead.
“Australia will have a greater access to the Chinese market, for example in the areas of services and agricultural products,” said Ms Fu, the most important Chinese official to visit Australia since the FTA was signed in June, and since the ensuing debate.
“It will also encourage greater Chinese investment and as a direct result, there will be more employment for the local people. Free trade is about removing barriers as much as possible.”
Unions, including the militant Construction Forestry Mining and Energy Union, have run an advertising campaign against the China deal, saying big investment projects in Australia would be able to import Chinese workers without adequately testing the local labour market first.
However, Ms Fu said China would pay a higher price for the agreement, since its tariffs would fall further, although Australian unions and the ALP were insisting on legislative changes before it was ratified.
“China is going to pay a higher price, because all your tariffs will come down from 5 per cent, whereas 96 per cent of ours will come down to zero from 10 per cent or above. But we shall have to overcome all these difficulties and honour our commitment.”
Asked whether more Chinese labourers would enter Australia, she said: “Australia has specific rules for size of investment, immigration, border control and skill and language qualifications.
“These are all laid down. China has them too. With or without an FTA, every country has its rules, and with the FTA more companies will be coming in and will create more jobs.”
She said both sides had committed to enable the staff needed to install equipment and manage investments, “within the conditions that both impose”.
Ms Fu said the deal with Australia was “one of many such agreements being completed or are under discussion” – including an investment treaty with the US and an FTA with South Korea.
“In any country there can be resistance and difficulties” in finalising FTAs, she said.
She said China’s economic fundamentals remained “strong” although growth was slowing.
This was a result of inevitable economic transition after more than 30 years of rapid growth to become the world’s second-largest economy. Now “the aim is to allow market forces to play a greater role”, including in setting the exchange rate, she said.
Although the sharemarket was stabilising, it accounted for only 3.2 per cent of total financing.
Ms Fu said Australia’s image in China was “mixed, a bit blurred”, despite the economic interdependence between the countries. “Australia should be able to understand China, with easier communications,” she said.
China’s economy was shifting from being labour-intensive to more technology-intensive, with growth in the services and consumer sectors picking up.
Ms Fu said China’s new One Belt, One Road and New Silk Road visions were all about connectivity – physical, cultural and informational.
Source: TheAustralian
