(Yicai) Sept. 18 -- CPA Australia is highly optimistic about the role that green and low-carbon services, along with technological innovation, will play in future China-Australia trade, Dale Pinto, president and chair of the board of the global accounting body, told Yicai at the 2024 China International Fair for Trade in Services in Beijing.

"There is significant potential for investment and collaboration in the green economy and technological innovation between businesses in Australia and China, particularly in areas like green energy and smart manufacturing," Lloyd Peng, president of CPA Australia's North China Committee, said at the CIFTIS, which had the theme 'Global Services, Shared Prosperity' this year and featured cutting-edge services.

The focus on sustainability aligns with broader trends in China's business landscape, said CPA Australia, which participated in the Australian Country Pavilion at the trade fair that ended Sept. 16. China is implementing stricter environmental, social, and governance disclosure standards for listed companies, which will be mandatory by 2026.

China’s small businesses are leading the Asia-Pacific region in the adoption of green and sustainable finance opportunities, according to the APAC small business survey released in May. Ninety-three percent of small firms on the mainland are actively undertaking ESG activities, the second highest in the Asia-Pacific region.

The accounting profession is increasingly needed for better ESG reporting and compliance, risk management, and the growth of green finance, presenting opportunities for Australian firms with expertise in sustainability and green technologies, said CPA Australia.

Mainland Chinese companies have the edge in technological innovation which allows them to drive ESG development, the company said. Eighty-one percent of respondents stated that investments in technological innovation have helped their companies achieve sustainability goals, exceeding the Asia-Pacific survey average by over 10 percentage points.

CPA Australia sees potential in helping Chinese companies navigate their digital transformation and embrace sustainability initiatives such as ESG frameworks, the CPA Australia spokesperson told Yicai. CPA Australia aims to play a key role by supporting the adoption of innovative technologies like AI and fostering a robust ESG environment.

CPA Australia will continue to collaborate with tertiaries in China and to exchange knowledge and practices, for example by engaging in joint research and ESG educational initiatives.

CPA Australia signed memorandums of understanding with Beijing Software and Information Service Industry Association, Beijing Power Supply Association and the Australian National University during the CIFTIS. The organization has also launched an ESG internship program in Hong Kong and is linking arms with Chinese internet behemoth Tencent Holdings on a "New Finance Inspiration on Rural Revitalization" competition in China this year.

As China continues to emphasize high-quality development and open up its services sector, the role of international professional bodies in facilitating cross-border expertise and standard harmonization is set to grow, analysts said. This evolving dynamic promises to create new avenues for China-Australian collaboration, particularly in emerging fields such as green finance, digital transformation, and ESG practices.

CPA Australia remains optimistic about the growth potential of the Chinese economy. Seventy-eight percent of respondents anticipate their company will expand business activities in the mainland in the next three years, the survey showed, especially in the Greater Bay Area and the Yangtze River Economic Belt. Last year, China emerged as Australia's largest services export partner, with exports surging by over AUD5 billion (USD3.3 billion) to AUD14.7 billion.

Editor: Kim Taylor