Australia’s trade and economic relationship with China: Benefits to Australian households

Commissioned by the Australia China Business Council, this report establishes a firm evidence base on the economic impact of trade with China on Australian households.

The report’s findings demonstrate that Australia-China trade offers measurable benefits to the average Australian household through the channels of increased employment, higher household income, and a lower cost of living.

This report found:

• Australia’s trade intensity with China increased Australian household disposable income by an average of $2,600 in 2022-23, and around $29 billion on aggregate for Australian households
• two-way trade with China in 2022-23 contributed to approximately 595,600 jobs, or 4.2 per cent of total employment in Australia
• Australian households would pay 4.2 per cent more for the same consumption items without China as a major import partner.

These benefits vary across state and territory, with different levels of trade intensity observed for each jurisdiction. But taken together, the benefits are sizeable.