What percentage share does China account for in Australia’s two-way trade?

What percentage share does China account for in Australia’s two-way trade?

• A. 25.7%
• B. 9.9%
• C. 50%
• D. 75%

Answer: (A)

Think of two-way trade as the total value of all trade Australia does with every country, counting both exports and imports. The share for a specific country is the sum of Australia’s exports to that country plus imports from that country, divided by Australia’s total two-way trade with all partners. If China’s combined exports to and imports from Australia amount to about 25.7% of Australia’s total two-way trade, that means roughly one-quarter of Australia’s trade flows are tied to China. This reflects China’s place as Australia’s largest single trading partner, while trade with many other countries also plays a substantial role. The other percentages would imply either far less reliance on China (a much smaller share) or an unusually high concentration with China (half or more of all trade), which isn’t consistent with typical historical patterns for Australia–China trade.

Think of two-way trade as the total value of all trade Australia does with every country, counting both exports and imports. The share for a specific country is the sum of Australia’s exports to that country plus imports from that country, divided by Australia’s total two-way trade with all partners.

If China’s combined exports to and imports from Australia amount to about 25.7% of Australia’s total two-way trade, that means roughly one-quarter of Australia’s trade flows are tied to China. This reflects China’s place as Australia’s largest single trading partner, while trade with many other countries also plays a substantial role.

The other percentages would imply either far less reliance on China (a much smaller share) or an unusually high concentration with China (half or more of all trade), which isn’t consistent with typical historical patterns for Australia–China trade.