Australian business ties with Asia decline 

Source:

Australia's research and business ties with Asia have experienced the largest decline in a decade, a new study shows.

The PricewaterhouseCoopers Melbourne Institute Asialink Index also indicates Japan has reclaimed its position from China as Australia's largest trading partner.

The index measures Australia's links with 25 Asian economies in categories such as education, trade and migration.

The research and business development section of the index fell 10.3 per cent, which is the largest fall since 1999.

It recorded a substantial fall in Australians making business visits to Asia and a drop in Asian business patenting in Australia.

The number of Asian tourists visiting Australia also fell by 7.7 per cent in 2008.

Asialink chief executive Jenny McGregor said the drop in research and development relations has not damaged Australia's long-term positive links with Asia.

But she stressed we cannot afford to become complacent.

"We do need to be concerned that research and business development has fallen significantly, especially with Japan, which recorded a drop of 28.3 per cent last year," she said.

Japan accounted for almost one third of Australia's exports to Asia in 2008 and provided almost 17 per cent of imports.

Japan invested $20.3 billion in Australia in 2008, a massive 58 per cent jump on the previous year.

Australia's overall engagement with Asia grew faster in 2008 than the previous year.

Since 1990, our nation's links with Asia grew 4.5 times, while engagement with traditional trading partners, such as the United States, has increased three-fold.

Australia's overall trade with Asia grew by more than one quarter in 2008, with Asia's share of Australia's total trade now at 56 per cent.