(Yicai) Nov. 11 -- Some 67 percent of Australian companies have said that their investment interest in China remains unchanged despite this year's US-China tariff escalation, according to the results of a survey by the Australia-China Chamber of Commerce.

About 46 percent of Australian companies will likely increase investment in China over the next two to three years, while 18 percent expect a decline, a report on the findings published by AustCham China during the eighth China International Import Expo on Nov. 7 showed. In addition, 55 percent predict maintaining or improving profitability this year, despite 72 percent highlighting the negative impact of US-China tariffs.

The survey, held from Sept. 26 to Oct. 15, involved 730 companies, split evenly between Chinese and Australian firms. Nearly 80 percent of respondents report stronger confidence in the Australia–China trade and investment relationship since February, "a striking result given that confidence was already high earlier this year", AustCham China noted.

"We are focusing on cost management while remaining ready to expand if demand rebounds," said an anonymous foreign respondent.

In addition, 61 percent of Australian firms are adapting their operations within China or increasing investment to capture opportunities as competitors exit, with only 4 percent reporting they were "significantly more likely" to shift production or sourcing outside the country.

Of investment sectors, agribusiness and food products led interest at 74 percent, followed by advanced manufacturing at 48 percent, resource-efficiency technologies at 39 percent, and education and training at 28 percent.

"We're moving from complementarity to joint capability, combining technology, talent, and capital to create solutions that neither economy can achieve alone," said Vaughn Barber, chair of AustCham China.

Avocados Australia is partnering with agricultural departments in China's Yunnan and Sichuan provinces to help local growers improve cultivation techniques, even though Australia has not yet gained market access to export avocados to the Asian country, according to Chairman Matthew Kleyn.

"The opportunity of avocados in China is so enormous that we at no time will be competitors, purely working together to grow the consumption of avocados," Kleyn said. "If China only consumes 50 grams (per capita now), if they get to one kilo, one and a half kilos like Hong Kong already has, there won't be enough avocados in the world."

Some 58 percent of respondents cited stabilization of bilateral relations for increased confidence, outweighing tariff concerns as the main factor shaping their outlook. Resilient Chinese domestic demand was mentioned by 46 percent.

The optimism shown in the survey follows Australian Prime Minister Anthony Albanese's six-day visit to China in July, which yielded agreements on trade facilitation, green energy cooperation, and tourism.

Chinese investment hunger for Australia remains strong, particularly in clean energy, electric vehicle battery manufacturing, and healthcare, which are all areas supporting the net-zero goals of China and Australia.

Four Chinese EV and hybrid models rank among Australia's top 10 best-selling cars.

Pragmatic Outlook Persists

While optimism has strengthened, businesses remain pragmatic. No respondents described themselves as "very confident" about China's short-term economic outlook due to property and financial-sector concerns.

Regulatory predictability remains an issue for 28 percent of respondents, though the figure was down from 34 percent in February. Perceptions of Australia's foreign investment review regime have improved, with 21 percent reporting progress after recent reforms, including a new online portal and fee refunds.

The China-Australia Free Trade Agreement, which will mark its 10th anniversary next month, received measured assessments, with two-thirds viewing it positively, but just as many saying its removal would have a limited impact, suggesting economic fundamentals drive the relationship more than preferential access. Some 55 percent of companies expressed interest in digital trade facilitation, and 35 percent in mutual recognition of professional qualifications in any future upgrade.

The survey preceded several recent developments, including the China-US leaders' meeting in Busan, announcing a framework for reducing certain tariffs.

"In a world where economic and political influence is no longer concentrated in one or two capitals, it has never been more important to invest time and care in managing key relationships," Barber noted.

For Australian businesses, the strategic calculus is clear: China's market size, growth trajectory, and increasing sophistication justify long-term commitment despite short-term volatility.

"Companies are not stepping back; they are adapting by diversifying supply chains, strengthening local partnerships, and investing in digital capability as part of a more resilient operating model," said David Olsson, president and chairman of Australia China Business Council. "Opportunity remains significant, the environment continues to evolve, and companies that invest in understanding geopolitical risk alongside traditional commercial considerations will be best placed to capture future growth."

Editor: Martin Kadiev