When the UK joined the European Economic Community, Australia were locked out as an export

market and were forced to establish new markets

Transport costs were high – geographical factors

The fast growing economy and population of China required the availability of cheap energy such as
coal and natural gas as well as minerals including iron ore, aluminium and copper

China’s displacement of Japan as a result of their recession and problematic financial market has
lead to Australia becoming its most important trading partner

Not only do China benefit from the rich supply of natural resources, but they are a major supplier of
most of our manufactured goods