Kim Carr (Victoria, Australian Labor Party, Minister for Innovation, Industry, Science and Research) Share this | Link to this | Hansard source

I wish to add to an answer I gave to a question from Senator Coonan. I wish to confirm that the Prime Minister has had a conversation with Premier Wen and has been told that the Chinese economy is expected to moderate in 2008 and 2009 and that a growth rate of something like between 11 and 12 per cent—which was forecast—is now likely to be down to between nine and 10 per cent. This will remain, still, a very strong growth rate, driven primarily by domestic demand. Australian export of iron ore and other commodities to China are largely for China’s domestic purposes and not for the export sector. There remains strong demand for fixed asset investments on the back of China’s continued urbanisation. Australia is focused on diversifying its exports to China, including to the services sector and to other markets. In regard to reports of delays in iron ore deliveries, the Australian government is monitoring the situation closely, but it is still too early to assess if there has been a long-term trend in regard to a slowdown in Chinese steel production. There is an ongoing volatility and we want to ensure that it is not just a short-term measure. Given the forecast of strong economic growth in the Chinese economy, there is an expectation that there will be continued sustained demand for Australian commodities.