Zhejiang provincial govt office to be set up in Perth

31/10/93

Ties between Western Australia and its Chinese Sister-State, Zhejiang Province, are set to strengthen with the arrival in Perth of two Zhejiang representatives to set up a provincial government office here.

The two, Mr Li Qian Bin and Mr Liu Hui, arrived in Perth on Friday [October 29] with a brief to help facilitate links between the two States.

Commerce and Trade Minister Hendy Cowan welcomed the arrival of Mr Li and Mr Liu and said their presence underlined the importance in which Western Australia was held by the Chinese authorities.

Chief representative Mr Li is section chief of the Zhejiang Provincial Foreign Affairs Department. Mr Liu is from the Zhejiang Second Light Industry Corporation.

"Zhejiang's Perth office will maximise the benefits of the Sister-State relationship by focusing on economic and commercial co-operation with the province," Mr Cowan said.

The opening of the office here stemmed from a trip to China by Mr Cowan in May this year. While in Zhejiang, Mr Cowan signed a memorandum of understanding with the provincial government which included provision for an office to be established.

The Zhejiang representatives can now be contacted through the Department of Commerce and Trade on 09 327 5666.

Mr Cowan said that areas which both sides had identified for co-operation included iron and steel, wool, animal skins, science and technology and personnel training.

The establishment of the Zhejiang office coincides with an analysis of trade figures which confirms the growing trade links between Western Australia and China.

In 1992-93 Western Australia's exports to China amounted to $887 million, about six per cent of the State's total exports, making China WA's fifth largest export market.

The nominal increase in exports to China amounts to $285 million or 47 per cent over the previous year. In 1991-92, iron ore exports amounted to $397 million or 66 per cent of total exports. In 1992-93 iron ore exports increased to $427.1 million, an eight per cent increase on the previous year and 48 per cent of total exports to China.

In the case of confidential items (largely alumina), exports increased from $115 million (1991-92) to $243 million (1992-93), an increase of 111 per cent. Proportionately, this was an increase from 19 per cent in 1991-92 to 27 per cent in 1992-93.

In 1992-93, Western Australia exports to China broadened in range, partially reflected in the decline in the relative significance of iron ore. Wool ($118 million) contributed 13 per cent of total exports, and cruise ships and boats ($42 million) accounted for five per cent.

The Department of Commerce and Trade is co-organising with the WA Chinese Chamber of Commerce a trade mission to China next month.

Western Australia exports more to China than any other State, accounting for 40 per cent of total Australian exports to China.

"Chinese investment in the State is likely to increase as well," Mr Cowan said.

"China will be increasingly interested in joint ventures in resources development projects to secure the long-term supply of raw or semi-processed materials.

"There will be also an increase of small to medium-sized investments by Chinese corporations in profitable ventures with a view to establishing themselves in Australia as part of their overall overseas trading strategy."

Media contact: Peter Jackson 222 9595