Beijing and Canberra broaden services trade

Australia's services trade with China, its largest export market, reached a new high last year, with experts identifying the digital economy, professional services and AI as potential new growth areas.

According to the Australian Bureau of Statistics, services exports to China rose 16.3 percent year-on-year to A$19.74 billion ($13.73 billion) in 2025, accounting for 13.9 percent of Australia's total services exports.

China has been Australia's largest trading partner for more than 16 consecutive years. Two-way trade in goods and services reached A$326 billion last year, or 25 percent of Australia's total, the Department of Foreign Affairs and Trade said.

Travel services remained the backbone of Australia's services exports, accounting for 60.6 percent of the total, with education-related travel making up 63.9 percent of travel services exports.

China was the largest market for education-related travel, with exports rising 13.7 percent to A$14.53 billion and accounting for 26.4 percent of the sector's total.

This year's China International Fair for Trade in Services, held last month in Beijing, drew participants from 90 countries, regions and international organizations, with more than 1,800 companies exhibiting on site.

Australia, guest country of honor at last year's fair, set up a national pavilion at this year's event to showcase its experience in services trade.

Dale Pinto, immediate past president and director of the board of CPA Australia, a professional accounting body, said services trade between Australia and China was "broadening and deepening".

The bilateral relationship was evolving beyond traditional goods trade into services and knowledge-based sectors, with the digital economy and professional services offering practical opportunities for deeper cooperation, Pinto said.

"Services trade enables businesses to collaborate more closely, transfer knowledge, develop talent and create higher-value economic activity," he said.

China became Australia's largest services export market for the first time in the 2009-10 financial year, when services exports to China reached A$5.8 billion.

According to the Department of Foreign Affairs and Trade, the United States was Australia's largest services export market for more than 20 years before then.

The department said services trade makes a vital contribution to Australia's prosperity by helping businesses grow and innovate through access to highly skilled technical specialists, service suppliers and investors.

Pinto said Chinese businesses were among the region's leaders in digital transformation.

According to CPA Australia's Asia-Pacific Small Business Survey 2025-26, only 15 percent of Australian small businesses identified AI as their top technology investment in 2025, compared with 48 percent on the Chinese mainland.

Many Australian small businesses remained behind their regional counterparts — including those in China — in enterprise technology investment, e-commerce and digital capability building, Pinto said.

The findings pointed to opportunities for Chinese technology companies and business leaders to share their digital expertise with Australia's 2.7 million small businesses, he added.

"Such businesses can contribute valuable technology, expertise and practical experience to help Australian small businesses lift their productivity, competitiveness and growth," he said.

Looking ahead, Pinto said services, knowledge-based sectors and talent would increasingly drive the next phase of growth.

"Professional services stand out as a particularly promising area," he said.

The global expansion of Chinese enterprises is creating opportunities for Australian organizations to provide professional services and expertise, he said.

Australian businesses could also benefit from deeper engagement with China's innovation ecosystem, business networks and internationally experienced talent, he added.

xinxin@chinadaily.com.cn