HOBART, Australia – Why would arguably the world’s second-most powerful person bother to visit an island at the bottom of the world most famous for a cartoon character that bears little resemblance to the real animal?
Chinese President Xi Jinping’s visit on Tuesday to Hobart was a series of photo opportunities with real Tasmanian devils, school children and very eager to impress political leaders in Australia’s southern island state.
But while Xi was busy showing his softer side, the real business was happening across town where Australian and Chinese business leaders were attending a forum on investment opportunities in Tasmania.
Tasmania is hoping to leverage its clean, green environment into booming Chinese demand for quality agricultural produce such as beef, lamb, salmon and seafood like rock lobster and abalone.
Tourism was also a key component, with Xi’s visit sparking hopes of increased Chinese interest in the natural beauty of Tasmania, which is roughly the size of Sri Lanka but has a population of only around 500,000 people. The forum also highlighted the mining opportunities in the state, particularly those for copper and nickel as well as minor metals such as tungsten.
In many ways, what Tasmania was trying to achieve in using Xi’s visit as a springboard to increased trade with China mirrors what the rest of Australia is aiming to do.
It’s no secret that Australia’s economy and future prospects have become inextricably linked to China’s, given the reliance on exporting commodities.
Australia is one of the few countries in the world to run a trade surplus with China, with annual exports worth about A$100 billion ($88 billion), while imports total about A$50 billion.
More than half of the exports are made up by iron ore, with coal, other minerals and liquefied natural gas (LNG) accounting for the lion’s share of the rest.
Agriculture is tiny compared to the rest, with the top export, wool, being valued at about A$1.9 billion in 2013.
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