Australia is becoming a key destination for Chinese exports, with imports reaching $34 billion in just three months. The rise reflects growing demand for electric vehicles, data centre equipment and construction machinery as industries expand to meet increasing needs in digital infrastructure and clean energy.
Global trade routes are undergoing a major shift. High tariffs in the US have made it a less viable market for Chinese goods. In contrast, Australia's low trade barriers make it a more attractive option. Between July and October, Chinese imports to Australia increased by 18% compared to the same period last year, driven by rising volumes of electronics, vehicles and heavy engineering equipment.
Electric vehicle imports alone were valued at $2.2 billion, a 75% increase from the previous year. Exports of electrical machinery from China rose 90% to reach $2.8 billion. These trends are linked not only to tensions between the US and China but also to China’s dominance in green technology and its role in supplying equipment for Australia’s growing data centre sector. Spending by technology companies on equipment such as routers and cooling units has doubled to $2.8 billion, boosting overall business investment.
This shift is not limited to Australia. Chinese exports to South-East Asia have also grown sharply, rising 23.5% so far this year. Chinese manufacturers are expanding further into the Asia-Pacific region as US tariffs, which can reach as high as 47%, force them to look elsewhere.
In total, Australia imported a record $100 billion worth of goods from China during the first 10 months of the year, an 11% increase from the same period in 2024. While Chinese exporters say they would return to the US market if tariffs were reduced, Australia is currently benefiting from diverted trade flows as long as pricing and policy remain favourable.
