Trade war between US and China creates opportunities for Australian SMEs
- Written by Tess Sanders Lazarus
David Thomas, China expert and founder and President of the Australia China SME Association is calling on Australian businesses to urgently act to capitalise on the export opportunities being created for Australian products as a result of the US China trade war.
Last week, the US administration introduced tariffs on $34 billion worth of Chinese goods being imported into the US. Goods include industrial machinery such as aircraft components, medical devices, vehicles, helicopters, ferries and various other industrial parts. China responded by introducing tariffs on $34 billion worth of US goods being imported into China. China imports a lot of produce from the US including farm grown goods such as apples, soybeans, avocados, mushrooms, potatoes as well as other goods including alcohol, frozen chicken nuggets, fresh pork, dairy, fish, seafood, pet food and more. Being is calling the actions the biggest trade war in economic history.
“Clearly this means it is going to be more expensive for China to buy produce from the US and similarly it is going to be more expensive for the US to buy certain industrial and medical items from China,” David Thomas said today.
“The only outcome here is that both countries will start to look towards other countries to source these items at a lower cost.
“Australia is considered one of the world’s leading food producers and we also boast an innovative and progressive medical and healthcare industry. We are perfectly positioned to fill many of the gaps being created as a result of this trade war.
“Australia needs to act as a matter of urgency. Many other countries will be doing the same including some of our Commonwealth colleagues, Canada and New Zealand.
“What is important to note here is that doing business with China and the US is no longer the playground of only the large end of town. The internet and simplified trading arrangements now mean that small to medium size businesses can export to these markets as well, and the China Australia Free Trade Agreement remains in place to support and grow our export activities.”
The Australia China SME Association was founded by David Thomas to assist Australian businesses undertake the export journey to China. As a member based organisation, it places a unique focus on the development of business relationships between Australian and Chinese SMEs and assisting Australian businesses to develop their capabilities to export, source and raise capital from China.
It does this through strategic partnerships, informational and educational forums, the facilitation of introductions, trade missions and other forms of support.
“We are strongly encouraging Australian SMEs interested in doing business with China to act quickly,” David Thomas added.
“We are in the midst of a perfect storm. Our message to Australian business owners and managers is simple. Join the Australia China SME Association and meet and connect with people who can assist with advice and guidance on where to start and what to do. Time is of the essence and if Australian businesses don’t act, the opportunities will be taken elsewhere.
“The Chinese already consider authentic Australian products to be of high quality so Australian businesses are already in a very good position to capitialise on the new opportunities being created. There is no better time to look to export to China than now.
“ACSME’s ultimate goal is to see more Australian businesses benefiting from China’s growing market through export, investment and collaboration opportunities. This will benefit Australia and our future as a nation if we support more Australian SMEs to promote and sell their products and capabilities overseas.”
