The historic free trade agreement signed between China and Australia in 2015, known as the China Australia Free Trade Agreement, has triggered criticism from trade union movements, scholars, politicians, commentators and think tanks, claiming that the agreement will seriously affect the Australian labor market.

However, since the entry into force of the China Australia Free Trade Agreement, bilateral trade between Australia and China has grown steadily.

According to the Ministry of Foreign Affairs and Trade, the bilateral trade volume in 2017-18 was A$195 billion (US$138.9 billion). Of this, A$123 billion is from Australia.

Sino Australian trade

According to data from the Ministry of Internal Affairs of China, the number of Chinese workers who have been allowed to enter Australia’s temporary work visas has declined every year since the ChAFTA was enacted.

The number of visas granted to Chinese workers has also fallen to the proportion of the total number of foreign workers.

James Laurenson, deputy director of the Australian Institute of Relations Studies at UTS, said that Australia’s 2015 “intimidation campaign” was not based on any facts, and its purpose was to “solve problems before they had time to start the agreement”.

“As Chinese companies introduce their own workers, the allegations that thousands of Australian jobs will be lost are simply not true,” he said.

The professor said that Australia has signed free trade agreements with other major trading partners, but there is no objection that “attracts the fierceness of ChAFTA”.

“There is no panic about American workers, Thai workers or Japanese workers. But it is said that ChAFTA will lead to a radical change in the labor market, and Australians will miss thousands of jobs for Chinese workers.”

He said that “reality has proved to be very different.”

Zhu Ying, director of the Australian Centre for Asian Business at the University of South Australia, said that the China-Australia FTA has “proven great benefits for both countries.”

He said that some of the criticisms of the agreement were “ideology-driven.” “No claim is based on facts or evidence.”

“China will definitely get more from Australia than export to Australia,” he said. “Just look at Australian exports of agricultural products such as olive oil, honey, fruit, seafood, wine, cheese and meat. Australia’s production is not enough to meet China’s needs.

“The free trade agreement not only increases employment opportunities in Australia, but also increases its income base. This is true.”

Lawrence said that the number of labor agreements between Chinese companies and the Australian Home Office is zero, which may help Chinese workers temporarily enter Australia.

“These results are not paradoxical. On the contrary, the fact of ChAFTA always points out that some claims are alarmist,” he said.

News Source: China Daily