Business owners pitch Australian wares in China

AMBITIOUS small businesses have begun a four-day sell to Chinese buyers, tantalising them with yabbies, wine and other home-grown products.

More than 250 Australian small and medium businesses are taking part in the China International Small and Medium Enterprises Fair (CISMEF), which opened yesterday in Guangzhou in southern China.

Australia's ambassador to China, Dr Geoff Raby, said the fair was an enormous opportunity for the businesses to tap into a potentially huge market.

New figures show that Australian exports to China rose 18.1 per cent in the past financial year to $46 billion.

But Dr Raby said that was just the tip of the iceberg.

While energy and resources were the key exports, the second largest sector was education and training.

Melbourne private school Wesley College is among education providers represented at CISMEF.

"China is our largest export market and is now bigger than Japan," Dr Raby said.

He said that, with many cities with populations between 10 and 13 million people, there were huge prospects for Australian business.

"Australia has a high brand recognition and 360,000 Chinese tourists came to Australia last year," he said.

Dr Raby also pointed to rising affluence in China leading to increased consumption.

"China is now the second largest economy in the world," he said.

"The potential for growth is there."

CISMEF, regarded as the biggest showcase yet for Australian smaller businesses overseas, is being overseen by Australian export arm, Austrade.

China is also Victoria's second largest export destination, behind New Zealand.

Dairy producers are at the fair, including Murray Goulburn - which is keen to expand its sales of infant formula.

Multivitamin products, favoured by the Chinese because of tough Australian standards on production, also are being exhibited at the fair.

Australian-Chinese businessman Karl Ye, who runs a shop in Beijing called Aunew, is exhibiting Beechworth Honey, cosmetics, vitamins and wine.

Mr Ye said sheepskin boots were becoming popular with upwardly mobile Chinese women happy to pay for fashion products.

Loreal Melbourne Fashion Festival is using Asian models in fashion parades showcasing Australian designers.

Adelaide-based Altura Coffee is busy turning out coffees for buyers better known as tea drinkers.

Director George Ghinis said there was big potential for his company to set up cafes, franchises and sell equipment and coffee into China.

"They are becoming very Westernised and are starting to drink coffee," he said.