China-Australia Free Trade Agreement

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Updated: Dec 02, 2022
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The article speaks about the agreement on China-Australia Free trade agreement. The concerns or fears raised is about opening floodgates for Chinese workers to enter Australia. The Australians were concerned about this because Chinese might come in plenty and flood the markets.

The article seeks to clarify to the Australian people that that was not the case and in fact, the number of the Chinese worker in Australia had dropped. The CHafta (Chinese-Australian free Agreement) is a deal between the Chinese and the Australian government scrapping of the 457 visa to allow for more temporary skilled workers to enter Australia under temporary visas.

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The CHafta was a deal that was made in December 2015. This deal laid a strong alliance between the two involved nations economically. The agreement sought to open up opportunities for Australian citizens to do business with China easily.

China is Australian primary export destination accounting for one-thirds of the total exports. It also sought to invite more Chinese people into Australia to boost foreign exchange. The article talks about how the CHafta agreement allowed for temporary Visa instead of the traditional 457 visa to be allowed. The temporary work Visa approved for a higher level of movement between the two nations. The 457 visa seeks to enable employers to sponsor overseas workers that worked in Australia temporarily. The agreement allowed for not testing of labor markets and potentially creating a gaping hole.

The article talks about how this agreement had to be renegotiated for these loopholes to be closed. The primary concern of the people was on Chinese benefiting more than the Australian people. The agreement provided a political discourse that sought to flood Chinese workers into the Australian markets increasing competition for the Australian citizens. The article provides data that in fact, the agreement has not contributed to the flooding of the market. Data from the report indicated that the numbers of Chinese workers using the 457 visa had reduced. The article proved that instead of the article increasing Chinese workers it led to a reduction. That in fact, the majority of people with 457 visas were from countries that had no agreement or those that were negotiating contracts with the Australian government. The article brought light to the unrest that developed among Australian Citizens and other unions.

In the context of international business, I feel that the agreement between China and Australia sought to make the business run smoothly between nations from different continents. This agreement allows for countries like Canada to follow suit and make agreements with other government for the benefits of both parties. The benefits of CHafta as indicated in the article improved foreign exchange increased tourism and the two nations were all to profit from this agreement.

In conclusion, the Canadian Government like any other government seeks to create the best conditions for doing business with other nations. Trading Agreements like the CHafta between Canada and other trading nations play a significant role in the creation of opportunities for business in Canada. Multilateral agreements like protection and foreign investment treaties are crucial for Canada and its trading partners, and they seek to be beneficial for both nations.


Karp, P. (2017, April 20th). Peak business group allays fears about trade loopholes in visa changes. theguardian: Business Australia. Retrieved from:

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China-Australia Free trade agreement. (2019, Jan 25). Retrieved from