Dear members and friends,

Over the last 12 months, I have felt both proud and humbled whenever someone told me that they had become closer to AustCham China, or that their membership had delivered value, or that their confidence in the chamber had grown.

I have been lucky to have led the secretariat during a period of warming bilateral relations between Australia and China. I have also benefited enormously from the guidance and the support from the board of directors – in particular from Vaughn, the chair. I take comfort in the knowledge that my role as the CEO of AustCham China produced some positive outcomes.

While I was honoured and eager to contribute to the Australian business community in China, it was always likely that I would return to my private business after a stint at the chamber. I am pleased that the secretariat is now more efficient, better staffed, and delivers services in more consistent quality than a year ago, and I am able to hand over to a competent successor.

As COO, Alex has demonstrated great passion, resourcefulness and positivity, as well as genuineness towards members and stakeholders – qualities that are essential for a chamber leader. As he takes up the challenge of becoming the CEO, I will remain with the secretariat as an advisor, ensuring a seamless and steady-paced transition. Please feel free to continue to contact me through email, WeChat or phone about chamber business. I will be pleased to introduce you to Alex if I have not already done so.

I will gradually shift my focus back to BeSpoken Solutions – the interpretation, translation and communication firm that I run with my wife Lacy. However, I will remain associated with AustCham China as a member, a partner, and a volunteer.

I look forward to seeing you at the next AustCham China event.

Warm regards,

Rex

 

会员们、朋友们：

我一年前加入中国澳大利亚商会秘书处后，不时有人告诉我，他们与商会的关系更紧密了、他们觉得商会的会籍物有所值、或者他们对商会的发展更有信心了。这让我在感到些许自豪的同时又受宠若惊。

遇上了澳中关系回暖的一年，我很幸运。有冯会长和整个理事会指导和支持我，我很感激。做了的一点微小的工作，产生了一些积极的成效，我很欣慰。

一年前，我跃跃欲试，希望为在华的澳洲企业社团贡献自己的专长。与此同时，我也知道，我多半会在一段时间后回归我自己的事业。现在，商会秘书处比一年前运行更高效，人员更充实，服务更稳定，我很高兴可以放心交棒。

卫怀儒——Alex，作为商会COO，展示了秘书处领导不可或缺的一些特质：热爱工作、技能全面、积极乐观，同时对会员和合作伙伴们热情真诚。在他挑起CEO的担子之时，我会留在商会，以顾问的身份继续出力，确保稳定和渐进的过渡。欢迎大家随时通过电邮、微信和电话联系我。如果您还未有机会和Alex认识，我乐意随时介绍。

我会逐渐把重心转回译格——我和太太蓝静共同经营的口笔译和传播服务企业，但是我仍然会作为会员、伙伴和志愿者保持与商会的紧密关系。

希望在下一次商会活动与您再见。

 

陈瑞元

With Australian Prime Minister Anthony Albanese arriving in China this weekend, China-Australia Chamber of Commerce (AustCham China) today released the findings of its latest Flash Survey which was conducted over a two-week period up until 31 October 2023 and represents the perspectives of 91 Australian and other foreign-owned companies engaged in business between Australia and China. 

 

1. Satisfaction with the Australian Government’s efforts to Stabilise the Bilateral Relationship is Greatly Improved

Over 70% of respondents are satisfied or very satisfied with the Australian government’s management of the bilateral relationship with China.  This represents a 180-degree turnaround since May 2022 when 70% of the respondents were not satisfied with the handling of the relationship under the previous Federal Government. 

2. Chinese Economy

Half of respondents are benefiting from growth in China’s economy while the other half say they are concerned about uncertainty and volatility or are already being negatively affected by the current state of China’s economy.  There has been a notable shift towards a more cautious outlook compared to last year with increased concerns about uncertainty. 

3. Perceived Risks and Uncertainties

The top three factors impacting decisions about and operation of respondents’ businesses in China are the politicization of the business environment in China, the predictability of China’s regulatory environment and the Australia-China relationship.  Significant impacts are also felt due to concerns about the US-China relationship, the state of the Chinese economy and overall global economic conditions.

4. China’s Significance in Global Investment Plans

Notwithstanding the concerns, for 33% of respondents China is their top investment priority, with an additional 25% ranking it among their top three priorities. This shows a slight increase in businesses considering China as a top priority since May 2022.

5. Investment Intentions for the Next 12 Months

Almost 90% of respondents plan to maintain or increase their current investment levels in China.  Of the 41% of respondents planning to increase their investment in China, for 65% this is primarily due to strategic prioritisation of the China market.  Other reasons include expectations of faster growth in China (19%) and improved market access (8%).  This represents a shift towards increasing investment since May 2022. 

6. Diversification is Not An “Either Or” Choice

31% of respondents have already initiated or increased diversification efforts while 23% are actively exploring diversification options.  While there is a noticeable increase in businesses considering diversification as a risk management response, the results show a balanced approach, with diversification of business activities or supply chains and commitment to the China market both playing roles in the business strategies of respondent companies.

7. Geopolitical Uncertainties and Regulatory Challenges

Understanding and planning for the potential impacts of geopolitics is the “new normal” for companies.  Maintaining open communication with Chinese stakeholders is the action cited by almost 60% of respondents as a response to geopolitical uncertainties.  While 57% of respondents find the regulatory environment favourable to their business, 43% find it challenging.  Forming partnerships or joint ventures with Chinese entities is cited as a strategy to navigate regulatory challenges (68%) and to respond to geopolitical uncertainties (32%).  Only two respondents said they have ceased or will cease their China business in response to geopolitical uncertainties. 

8. Strategies to Drive Recovery and Growth

30% of respondents are focusing on innovation and product development, 20% on expanding into new cities and regions in China, and 16% on increasing use of e-commerce and digital platforms.  These strategies show an adaptive approach to overcoming challenges and seizing growth opportunities in the dynamic Chinese market.

9. 70% of Respondents are Optimistic about the Long-term Outlook

In the long-term, just under 20% of respondents are highly optimistic about their China business, while just over 50% are cautiously optimistic.

 

Vaughn Barber, Chair of AustCham China, commented on the survey: “There’s a renewed sense of cautious optimism in the Australia-China relationship thanks to the ongoing efforts on both sides since the election of the Albanese Government in May last year.  Despite global uncertainties and a challenging business environment, Australian companies remain committed to the China market.  They’re adapting their strategies to defend and grow their China business, navigate regulatory challenges, and manage risks effectively.  These survey results are a testament to the importance and future potential of Australia’s economic relationship with China and the resilience and adaptability of the hardy cohort of companies and institutions delivering record export volumes and other milestones which contribute materially to the prosperity of our nation.”

As Prime Minister Albanese’s visit unfolds, these insights offer a valuable context for understanding the evolving landscape of China-Australia business relations.