Josh Weiner
Australia and China share a complex but deeply intertwined economic relationship. At the core of this relationship lies a significant question: Does Australia run a trade surplus or a trade deficit with China?
The short answer is — Australia runs a substantial trade surplus with China.
A Surplus Fueled by Resources
Australia’s trade balance with China is overwhelmingly positive, primarily due to massive exports of natural resources. Iron ore, coal, and natural gas form the backbone of these exports, with China being Australia’s largest customer. As of recent figures, exports to China have reached over AUD 180 billion annually, while imports from China total significantly less, often around AUD 100 billion.
This trade surplus has been a key pillar of Australia’s economic stability over the past decade. Despite diplomatic tensions between Canberra and Beijing, the resource demand from China has remained resilient, especially in construction and manufacturing sectors.
Imports Still Matter
While Australia enjoys a surplus, it still heavily depends on Chinese imports for consumer goods, electronics, machinery, and raw materials for domestic industries. This means that while the net balance favors Australia, both countries are tightly interdependent.
The Bigger Picture
Globally, Australia’s overall trade balance fluctuates depending on commodity prices and global demand, but when it comes to China specifically, the surplus is steady and significant. This strong export performance has shielded Australia from broader global economic shocks.
Conclusion
So, to set the record straight: Australia does not have a trade deficit with China — it has a strong and ongoing trade surplus. This surplus reflects Australia’s role as a leading supplier of critical natural resources to one of the world’s largest industrial powers. As long as China’s appetite for these resources continues, this economic dynamic is unlikely to shift dramatically.
