Speaking at a Bloomberg event in Sydney yesterday, Mr Morrison said that as China’s population grows wealthier, there will be a greater desire from the Chinese for goods and professional services such as financial advice.
“I’m advised that for every dollar we spend buying Chinese goods and services as Australians, the Chinese spend two dollars buying our goods and services,” he said.
“The emerging middle class will also have greater demand for more sophisticated goods, and a broader range of services, especially the financial and professional services at which Australians excel.”
This will mean “enormous opportunities” for financial advisers and accountants, he said.
Mr Morrison added that the China Free Trade Agreement will remove many barriers to the Chinese market and provide Australian service exporters with improved access.
“These include financial services, legal services, education, tourism, health and aged care,” he said.
“This improved access to market will be equivalent or better than those enjoyed by competitor countries but we will have to be competitive in all of these areas.”
Mr Morrison said Australian businesses will also need to adapt to servicing clients over greater distances.
“Australian businesses need to be able to provide their services to people in China in the same way someone in Hobart might provide them to someone in Cairns, or someone in Sydney was providing them to someone in Perth,” he said.
“We are used to dealing with these distances in our own domestic economy, which suits us well for providing them to customers that aren’t that far away.”
Because the chinese tax and financial services system is so similar to Australia?
Because the 100,000 financial advisers China Life (as one example) has aren’t capable and don’t have a better understanding of their local market, and without a language barrier?
AMP, IAG and CBA are there already, opportunity exists for a financial services providers but for small business advisers, unless you have a strong connection to china already (and speak the language) I fail to see the opportunity.
Distance is the easy part, I have clients on the other side of Australia. Who’s compliance regime do you adopt?
Is it just me or is anyone else starting to think this Liberal Gov is away with the fairies. First they pull the carpet from their commitment to reduce red tape, then they knock independent risk advisers for six by limiting remuneration (inexplicably) but it’s all ok because of the opportunities stemming from the China FTA. Head in the clouds Libs!
Scott you are our treasurer and you are saying this is a new direction for financial planners, do you even understand what you are saying , Australia is in trouble if you have the same approach to our economy, or should I start skyping Chinese clients.
Or maybe we should increase your medication
Well said scott it may be the only place Financial Advisers will make any money because they certainly will not be earning it in Australia.