Application Exercise 8g: CHAFTA and changing trade focus
- Explain the importance of China’s ageing population and demographic change in creating a potential growth of services exports from
The rising average age of China’s population, along with the country’s One Child policy has meant that many Chinese will need to access paid care as they age (rather than relying on family as is traditional). This will create an enormous market for those medical and aged care providers (i.e. service providers) who can set up in China and export their retirement services to that country.
- Provide two examples of service providers that have gained a benefit from expanding into the Chinese
Australian retirement village company Aveo had its first Chinese venture in December 2015 – creating accommodation for 2,500 residents. And developer LendLease opened its new senior living facility in 2021 in Shanghai.
- Investigate why Australian food is a particularly popular (and growing) non-commodity export to the Chinese market.
Chinese consumers are attracted to Australia food stuffs because of perceptions of food safety and quality, better nutrition, superior freshness and high-quality packaging. Many use Chinese ‘daigou’ sellers – individuals or consortiums who buy products outside China and deliver directly to Chinese consumers- who make it easier for Chinese customers to access foreign food markets.