“The adjustment taking place in China is one of the most beneficial things for Australia,” Felix Stephen, head of investment strategy and research at Advance said during a forum held in Sydney to discuss China’s future.
Mr Stephen believes that as Chinese move to an increasingly consumption-led economy, it will create a greater demand from Australian products and services.
“What do they want? They want wheat, they want cattle – we can give them exactly what they need … and also added to that there is a financial market that is crying out for help, and our financial market is one of the most sophisticated, developed markets in the world,” Mr Stephen said.
“So not only can we give the Chinese what they want in terms of the daily consumption with the emerging middle class, we can also help them out with our financial expertise.”
Mr Stephen said although this transitionary phase in China could be painful, afterwards it had the potential to be beneficial.
Jonathan Pollack, a senior fellow in foreign policy and a specialist in Chinese politics, who was the guest speaker during the event, added that the Australian government can help in building relationships to service the Chinese middle class.
“Much of this is the purpose of governmental behaviour in facilitating these kinds of relationships, rather than thinking them simply as commercial exchanges,” Mr Pollack said.
“There are things that the government can do that the private sector cannot, but with an eye for what you are trying to build for the long term.”
