Location! Location! Location! It’s the catch call of property. The same holds true for regions, as Australia’s fortunes are lifted by being so close to China.

China has just announced a whopping 3rd quarter growth rate of an annualised 8.9 per cent! This is the third highest on record, and seems unbelievable in the context of the global slowdown and the tough times in the USA and UK.

These countries were our historical trading partners, but now China is our number 2 customer, after Japan. Thank goodness, we say, as the US struggles with huge deficits and the UK posts a negative result in the September quarter.

China’s economic power is awesome. Domestic consumer demand is only 35 per cent of the economy – compared to 60 per cent in Australia. The strong growth has come from huge government investments in infrastructure, like road and rail. When the consumer share of the economic pie grows, the outlook for the future is very reassuring for China’s Asia Pacific neighbours.

We have benefited through the export of iron ore, coal, and other natural resources that we mine and ship to fuel the furnaces of China’s growth. Bear in mind that we also have the agricultural base to supply the food needed by a population of 1.3 billion.

There are only 22 million Aussies, yet we have this massive continent as our launch pad to supply the country that will become the world’s economic powerhouse, and the engine for world growth.

What’s the importance of this for you and me? Simply that despite our relatively small population, we have the goods needed by China, and they will become our biggest trading partner and the reason for our continued prosperity. This adds tremendous certainty to our own economy. Our relationship with China is a major reason why we have come through the GFC with so little pain.

So, while you can’t choose your family, you can be lucky with your neighbours. All the efforts in years gone by to recognise the growing importance and influence of China are paying off in a big way. Our location means we are in a great neighbourhood for the future and this is great news for us all.