-
Year of the Snake: Could China slither into resurgence in 2025?
The Chinese lunar new year in 2025 welcomes the Year of the Snake, symbolising wisdom and transformation, offering opportunities for personal growth and change and follows the Dragon. This lunar new year falls on 29 January, kicking off a 16-day spring festival. The Chinese zodiac operates on a 12-year cycle, with each year represented by a different animal. In 2025, the Year of the Snake is the sixth animal in the zodiac cycle. Unlike the bold and outgoing Dragon, the Snake represents calmness and introspection. China is the fifth-largest foreign direct investor in Australia with investment stock worth $46.6 billion in 2023, accounting for 4% of total foreign direct investment (FDI).
In recent years, Chinese investment has broadened from mainly mining to other sectors including infrastructure and healthcare. While China’s growth is expected to moderate out to 2026 due to structural and demographic factors and is expected to slow from 5% in 2024 to 4.5% in 2026, the country’s economy could receive a boost following a “supergiant” gold discovery in late 2024.
In November, China discovered the world’s largest deposit of gold — estimated at ¥600 billion (US$83 billion) and containing 300 tonnes at depths of up to 2km. Officials believe there are more than 1,000 tonnes of gold reserves at a depth of over 3,000m in the area, located in the Wangu gold field. The find surpasses South Africa’s South Deep mine, the recent discovery at the South Deep mine in South Africa, which holds about 900 tonnes of ore.
Chinese authorities will be conducting feasibility studies in order to identify the actual reserves and initial exploration suggests it is the largest gold reserve ever uncovered. Producing about 375 tonnes, China is the largest gold producer in the world. Over several years, the country has remained top of the list due to its commitment to large-scale mining operations – accounting for 10% of the global gold production in 2022.
China is also in the top 10 countries with higher gold reserves held by the central bank, with 2,235 tonnes worth almost US$140 billion in value.
The gold bar and coin sector is also in more demand in China than in any other nation. The strong investment demand for the precious metal has naturally led to the popularity of gold bars and coins in the country, resulting in 280 tonnes.
China’s dominance in the global gold market comes as Australia and China begin strengthening trade and investment ties after years of a strained relationship. China is Australia’s largest two-way trading partner, increasing some 9.3% in 2023 and totalling more than $327 billion.
Australia’s goods and services exports to China totalled $219 billion in 2023 – up 18.3% compared to 2022.
Increased engagement between Australia and China has led to positive developments in the trade relationship, including the removal of most of China’s trade impediments that had affected Australian exports since 2020.
China is the fifth-largest foreign direct investor in Australia with investment stock worth $46.6 billion in 2023), accounting for 4% of total foreign direct investment (FDI). Australian FDI in China totalled $2.2 billion in 2023.
In recent years, Chinese investment has broadened from mainly mining to other sectors including infrastructure and healthcare.
China’s growth is expected to moderate out to 2026 due to structural and demographic factors, including population falls and slowing urbanisation and is expected to slow from 5% in 2024 to 4.5% in 2026.
In November last year, the Australia China Business Council (ACBC) concluded a high-level business delegation to Beijing, marking a significant step in the ongoing renewal of Australia-China relations.
The two-day visit, led by ACBC National President and Chair David Olsson, brought together senior executives from leading Australian companies to engage with Chinese government leaders, officials and business leaders.
The meetings served as an opportunity to hear first-hand about China’s economic transition and the potential for collaboration across sectors and industries.
This was the first such business-to-government delegation from Australia in several years, underscoring the growing momentum in the bilateral relationship.
As the two countries celebrate the 10th anniversary of the Comprehensive Strategic Partnership (CSP), the delegation discussed the importance of traditional areas of business cooperation, – in sectors such as mining and resources, energy, finance and agriculture -, and opportunities emerging in areas such as renewable energy, healthcare, digital services, supply chains and the green economy.
The visit came at a crucial moment, as both governments seek to stabilise their relationship and manage geopolitical and economic challenges. It follows China’s recent economic stimulus announcements, adding timely relevance to the delegation’s focus on investment opportunities.
Established in 1973, ACBC represents more than 450 Australian companies with business interests in and with China. For more than 50 years, the council has been an advocate for members, promoting the benefits of economic cooperation and fostering deeper commercial and cultural ties between Australia and China.
Australia established an embassy in Beijing also in 1973, after establishing diplomatic relations with the People’s Republic of China in 1972.
Bilateral engagement has generated benefits for both countries. While each has many shared interests, there are also differences to manage. Both sides acknowledge that Australia and China have different histories, societies and political systems, as well as differences of view on some important issues.
Source: https://mining.com.au