CHINA DEVELOPMENT BANK AGREEMENT

Mr KENYON (Newland) (15:49): My question is to the Minister for Industry and Trade. Can the minister inform the house about the MOU he signed yesterday in partnership with the China Development Bank and also outline the excellent economic relationship that South Australia has with China?

The Hon. A. KOUTSANTONIS (West Torrens—Minister for Industry and Trade, Minister for Small Business, Minister for Correctional Services, Minister for Gambling) (15:49): I thank the honourable member for this important question and his deep interest in all things Chinese. Yesterday I was privileged to represent the state government for the formal signing of a memorandum of understanding between the President of the China Development Bank and South Australia. More than 250 Chinese delegates travelled to Canberra as part of a trade investment mission. The MOU was one of 10 that was witnessed by the Prime Minister and Chinese Vice President Xi Jinping in front of an enthusiastic crowd of Chinese and Australian media and a team of observers from both countries. The memorandum of understanding is a combination of intensive negotiations between the South Australian government and officials of the China Development Bank.

Its framework for cooperation will open more doors to two-way investment and trade with the world's fastest-growing economy. The sectors covered by the MOU include resources, infrastructure, clean energy, minerals processing and agriculture. The South Australian government, through the Department of Trade and Economic Development, has been working closely with the bank's commercial clients to increase investment and trade relations to boost Chinese investment in South Australia.

The resilience of the Chinese economy is one of the keys to South Australia and Australia's economic performance, and our state continues to cultivate strong and mutually beneficial ties with China. The Rann government also recognises the importance of attracting investment capital from China as a way of boosting South Australia's mineral production and export capabilities. Last year China was the second biggest export market for South Australia—exports valued at more than $1 billion—with minerals and agricultural commodities such as iron ore and concentrates, refined copper, wool and barley featuring prominently. But increasingly, South Australia is also exporting high-value items such as wine, steel and paperboard.

ABS figures show that China ranks second behind the United States as an export destination for South Australia and first in importance as an import source. While in Canberra, I also witnessed the signing of a joint venture agreement between the China National Offshore Oil Corporation and Altona Energy in a project at the Arckaringa Basin near Coober Pedy—in your electorate, Madam Speaker. The MOU outlined a $40 million feasibility study which took into account the production of high-value clean energy products in a potential $3 billion project that is based on extracting coal and converting it into liquid fuels such as oil and power.