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November 2, 2017

Glennon recently attended a two-day China conference where we listened to representatives from Austrade, the Chinese answer to Amazon, Alibaba, and a bunch of local companies who are doing their best to succeed in China.

There is no doubt the potential is enormous. If the economy grows at the expected 6% it is like doubling the economies of NSW and Victorian economies every year. As Chinese infrastructure investment is slowing the consumer is taking over – private consumption expected to move from 41% of GDP to 51%. The number of Chinese nationals earning more than US$32,000 a year, which is a sweet spot for Australian products, will grow from 25m to 109m by 2021. This will put the squeeze on China’s already scarce land and water resources and drive the need for imported goods.

The key Australian products include food – particularly beef, dairy (including the much celebrated infant formula), seafood, cereals, cereal snacks and eventually fruit – plus wool, lamb skins (shoe leather), anim...

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