Outcomes Report – China 2011

The Hon Ted Baillieu MLA

Purpose of travel

I travelled to China from 21 to 28 September. The purpose of travel to China was to :

• Strengthen and grow relationships between Victoria and China – our largest trading partner - in business investment and exports, education, agriculture, tourism and planning

• Seek new business opportunities for Victorian companies in China

• Renew and refresh Victoria’s sister-state relationship with Jiangsu Province

• Meet with a number of senior Chinese officials to develop new government-to-government ties

• Promote Victoria as a desirable tourism destination and stronger education links.

China is Victoria’s largest trading partner and will grow in importance as the demand for Victoria’s expertise in sustainable urban development, advanced manufacturing, food and beverage, tourism and education increases.

My meetings with Victorian and Chinese business groups secured investment and jobs in Victoria and promoted Victorian expertise across a range of key sectors.

Key business and investment outcomes include:

• Co-signing a $2 billion contract to guarantee the supply of ethane and LPG to the Qenos Altona plant. This agreement between ESSO and Qenos confirms a 15 year investment in Victoria and secures ongoing jobs for Victorians. This is a major commitment in Victoria between three companies that brings together the competitive advantages of our petroleum and manufacturing industries in Victoria. Work has already begun on the $195 million plant redevelopment, announced in November last year, that will create 250 jobs during construction.

• Securing new investment into Victoria, with China Southern Rail announcing its plans to establish its first Australian office in Victoria and Melbourne as its regional headquarters. This represents an initial investment of $5 million and the creation of 20 jobs. Securing China South Rail’s regional head quarters strengthens Victoria’s reputation as a hub for transport and logistics industries.

• Witnessing a Memorandum of Understanding between the Industrial and Commercial Bank of China (ICBC) and EMR Capital. This agreement partners a Victorian-based private equity fund manager with the largest bank in the world, and is the first of its kind for an Australian fund. The agreement enhances Victoria’s reputation as a financial services hub and provides long term opportunities for other financial services collaborations.

• Promoting Victorian expertise in sustainable urban design with senior Jiangsu Government officials through a major forum involving Victorian architectural and design companies. The  ‘Liveable Cities: Exploring New Possibilities Together’ forum focused on some of the excellent projects companies like LAB Architects, Studio 505 and AUS Cluster members are involved in across China and promoted their expertise and track record in delivering unique major urban development and renewal projects. I also officiated at the opening of Studio 505’s Wujin office, which gives the company a Chinese-base from which to grow their business.

• I opened SMS Management and Technology’s office in Hong Kong. The expansion of this highly successful Victorian-based business into Hong Kong gives SMS an excellent base from which to develop their business across China.

• As part of Victoria’s plans to ramp up its trade efforts in China, I announced a Super Trade Mission for 2012 - the largest ever Australian trade mission to China. More than 100 Victorian companies representing diverse business sectors, will visit China in the first half of 2012 to build on our strong commercial links and develop new and exciting investment opportunities.

• At a meeting with the China Centre for International Economic Exchange – a key policy agency that develops China’s 5-year Strategic Plan – we discussed opportunities for further trade and investment cooperation between Victoria and China.

• My meeting with CITIC Bank in Hong Kong provided an excellent opportunity to discuss potential investment into Victoria and promote Victoria as a regional financial services hub.

• I met with the MTR Corporation to discuss the importance of a high performing and reliable commuter rail service to Victoria.

I attended and hosted a number of events to promote tourism, major events, food and beverage, and build on our strong links in education and information exchanges.

• The Victoria Racing Club Melbourne Cup International Event promoted the Melbourne Cup Carnival as a tourism and business destination, as well as promoting Victorian expertise in hosting international major events. The event also strengthened ties between Victoria’s highly developed racing industry and the growing Chinese industry.

• I announced that Victoria will launch an $8 million marketing campaign next year as part of a 10 Year China Tourism Plan which promotes Victoria as an ideal tourism destination for Chinese tourists. China is one of Victoria’s fastest growing tourist markets, and this event promoted the many and varied tourism experiences in Victoria in China to a number of key Chinese travel agents and suppliers. I also announced the opening of a new tourism office in Guangzhou to extend the reach of the travel industry servicing and marketing to a range of second-tier cities.

• I attended and spoke at a ‘Put Victoria on Your Table’ event that showcased and promoted Victorian food and wine industry to a large audience of major distributors and retailers, and I announced Victoria’s involvement in a major marketing campaign on Chinese television with an audience of 400 million people. I also announced the Victorian Government’s plans to release a Wine Export Strategy which will promote Victorian wine in the large and growing Chinese market, and grow our exports to the region.

• I spoke at the Australia China Chamber of Commerce in Shanghai and Beijing, promoting Victoria’s competitive strengths and potential business opportunities, including the Victorian Government’s plans to open a new commercial office in Beijing and plans for a Super Trade Mission to China in 2012.

My meetings with government representatives were important in strengthening Victoria-China relations, identifying new areas for co-operation and renewing our sister-state agreement with Jiangsu Province.

• I signed a Memorandum of Understanding with the Governor of Jiangsu Province, which renews and expands our sister state relationship and creates the Victoria-Jiangsu Partnership Forum. This new body will encourage broad and comprehensive engagement, involving government, individuals and institutions, open up new and exciting opportunities for co-operation in tourism, education, language-exchange, arts and culture, science, technology and innovation and share the benefits of our sister state relationship more widely.

• Announcing one scholarship programme and confirming another to strengthen ties through education. The Hamer Scholarships, valued in total at $500,000, will see up to 50 tertiary students and young professionals live and study Mandarin in China each year to increase Victoria’s linguistic capabilities. The DEECD funded scholarships will allow for Chinese high school students to live and study in Victoria.

I met with a number of senior Chinese officials to discuss ways to strengthen our relationships, seek new ideas for co-operation and to develop new relationships with government bodies and institutions.

• At my meeting with the Chairman of the Chinese People Political Consultative Conference, Shanghai Committee we agreed that Victoria and Shanghai will co-operate across a range of sectors including information and communications technology, urban design and education.

• I met with the Mayor of Nanjing where we discussed opportunities for greater collaboration in the areas of urban design, liveability, agriculture, tourism, environmental protection, traffic management, public service, education, and arts.

• I met the Vice Chair of the Jiangsu Provincial People’s Congress and other senior Jiangsu officials to discuss the strength of the Victoria Jiangsu relationship and the many opportunities for future cooperation.

• In Hong Kong I met with the Chief Executive, Mr Donald Tsang, where we discussed the opportunities for co-operation. Mr Tsang has been instrumental in strengthening Victoria-Hong Kong relations.

• My meetings with the China Investment Corporation, the China Centre for International Economic Exchange, and the China Education Association for International Exchange all reinforced the Victorian Government’s commitment to enhanced links, information exchange and developing our relationships.

Benefits of travel to the State of Victoria

My travel to China delivered numerous benefits to the State of Victoria. These include securing jobs and investment in diverse sectors, promoting Victorian expertise in manufacturing, education, sustainable urban development and design, major events, ICT and food and beverage. My travel strengthened institutional links between Victoria and China, and promoted the advantages of a close working relationship across government, government agencies and institutions.

The Victoria-Jiangsu sister state relationship is an excellent foundation for a strong, respectful and co-operative relationship. Renewing this relationship after 32 years provided an occasion to focus the relationship on new and emerging sectors, and commit to strengthening our cultural and personal links. Scholarships for Chinese students to live and study in Victoria and for Victorian students to live and study in China will enhance our language and cultural understanding of each other, and serve to strengthen our future ties.

China is now Victoria’s largest trade partner, and there is much potential for the relationship to grow and develop. Investing in strong relationships, language and cultural understanding now positions Victoria well to maximise the opportunities that China’s growth and development will offer.