China has emerged as one of
Australias largest
trading partners and is set to soon end
Japans 40-year long reign as
Australias largest export market.
The increasing level of trade is based on
Australias strengths in raw materials such as
iron ore, coal and crude oil, similar to its exports to other Asian countries such as South
Korea,
Japan and
Taiwan.
Australian investment in
China, during the same period, however, has slowed. The total amount of Australian investment in
China is roughly A$1.5 billion ($1.1 billion), equal to only about half the amount Chinese companies invested in
Australia, according to the Australian Bureau of Statistics.
Officials from Australian steel producer BlueSteel have announced that the company is the largest single Australian investor in
China, with an investment of over A$500 million ($369 million) in the last decade.
Moreover, BlueScope has also made an investment of A$280 million ($270 million) in a
coated steel plant in Suzhou near Shanghai, which is currently under
construction. Upon completion the plant will have an annual capacity of only about 250000 tons when it opens in 2006. This figure will be just a very small fraction of
Chinas total steel
production which is expected to exceed more than 300 million tons a year by that time.
BlueScopes current strategy is to take advantage of its small product range and carve out a niche for itself in the market by solely focusing on high value-added orders, mainly for large
construction projects. The company is focusing on supplying steel, and in some cases, together with its local subsidiaries, engaging in the
construction of factories, power stations, and public buildings such as stadiums, airports and increasingly housing projects.