from the west australian today

FYI

China?s peak economic planning ministry has inked a bilateral trade and investment agreement with the WA Government.

Premier Colin Barnett today signed a memorandum of understanding with China?s National Development and Reform Commission covering bilateral trade and investment co-operation.

It is the first time the NDRC has signed an agreement with a State Government, Mr Barnett says.

The Liberal leader flew to Beijing on Wednesday on a mission to save the beleaguered $5.9 billion Oakajee iron ore export port project in the Mid West, although he said he did not ?expect to come back with a solution?.

Mr Barnett seeks to encourage Chinese investment in the long-awaited development, which stalled because the Japanese-backed Australian proponents, Murchison Metals, don?t have enough funds.

The agreement signed today is considered significant given the NDRC is highly influential, reporting directly to China?s highest executive body, the State Council of the People?s Republic of China.

It oversees restructuring of China?s economic system and formulates economic development policy, including the Asian superpower?s approach to key overseas investment markets, and approves major infrastructure projects.

The agreement envisages increased bilateral trade between WA and China, and also establishes an investment facilitation working group, which will meet annually to discuss issues such as local content policies and opportunities for joint development.

Exports from WA represent 73 per cent of Australia?s exports to China and 80 per cent of China?s investment in Australia is in the mineral-rich State.