Australia in the Asian Century: mutual challenges and opportunities

The Australian government published a White Paper last week setting out strategic directions for “Australia in the Asian Century”. It outlined things Australia needs to do to increase its orientation towards the rising Asian countries, and things it needs to do domestically to improve its economic competitiveness in the face of ever more intense competition.

Most commentators have described it as a sensible set of recommendations. We would share much of the analysis in Britain, though we would add that there are other important emerging economies outside Asia too. So it was very good timing for the FCO’s Economic Director General, Barbara Woodward, to be in Australia for the annual Strategic Dialogue talks, together with her colleague from our Ministry of Defence.

She had a chance to discuss Asia, and other issues, with officials, politicians and commentators, and describe some of the things we are doing through our “network shift” to focus significantly more diplomatic effort on China, India and other fast growing economies. The visit helped to prepare for the Australia UK Ministerial meeting (AUKMIN) which will take place in Perth in January.

Barbara also had some good meetings with the business community to pursue our prosperity agenda, particularly financial services companies in Sydney and resources businesses in Melbourne. She met NSW Infrastructure Minister Brad Hazzard, together with a group of British companies who have a keen interest in the huge infrastructure opportunities in the Australian market.

As both British and Australian businesses adjust their strategies to the evolving dynamic of Asia, we are inextricably linked, not least because European consumers buy Chinese products, stimulating Chinese demand for Australian resources and services.  And, as well as competing with each other, there are many opportunities for British and Australian companies to collaborate in tackling emerging markets in this region.

I will be giving a speech about this, together with Victorian Premier Ted Baillieu, at the Australia British Chamber of Commerce in Melbourne later this week.