SYDNEY, May 20 (Xinhua) -- Chief Economist of Australian Trade Commission Tim Harcourt said here Wednesday that China's economic growth was encouraging and good for Australian trade and investment.

    "Trade and investment links with China and other emerging economies are going to help Australia survive the global credit crisis," said Harcourt at the Australia China Business Forum.

    He said, despite the global downturn, China predicted economic growth of between 6 and 8 percent in 2009, which, coupled with the latest industrial production figures, indicated a return to solid growth, particularly in the second and third tier cities in west China.

    According to him, Australia's share of exports to emerging countries rose to 53 percent compared with 43 percent 10 years ago. The exports to China has seen an average annual growth of 24.8 percent over the last 10 years.

    "According to research commissioned by the Australia China Business Council, the average Australian household now benefits to the tune of 3,400 Au dollars (2550 U.S. dollars) a year from Australia's trade with China," Harcourt said.

    "Investment is also an increasingly important part of the Australia-China relationship. Strong outward FDI flows from China are replacing the traditional trade route as a form of global engagement."

    According to the Australian Bureau of Statistics, China's total foreign investment stock in Australia reached 6.2 billion Au dollars in 2007, a 78 percent increase year-on-year and a 120 percent increase over five years.

    "Current levels, while still relatively modest, indicate the strong potential for China to grow its foreign direct investment position, and given recent FIRB approval trends, we should see a marked increase in China's total FDI investment in Australia in 2008 and 2009," he added.

    Harcourt, who has visited China for several times, said the recent implementation of significant stimulus measures had been well received in China and bolstered the economy in several areas.

    "While there remains a range of challenges to deal with, the general view is that China will continue to make a major contribution to world economic growth in the short and medium term."

    He said the rapid rate of infrastructure development, the industrialization of agriculture and the development of eastern coastal cities will continue, along with the development of China's western interior.

    Harcourt said the trading relationship was also undergoing increasing diversification as the Chinese economy rapidly evolved.

    "China is our number one source of foreign students, for example, and the Chinese government is working to improve the intellectual property environment, as well as enhancing China's sustainability, clean energy and environmental credentials," he said.