Is Australia hugging or bashing the panda?

China is now central to Australia's economic prosperity. It overtook Japan as Australia's top export destination early this century and is now Australia's top partner in terms of exports, imports, tourism and education. And there are a number of "mega trends" that are likely to make China more important for Australia.

First, China is transitioning from a country of shippers to a nation of shoppers. It is no longer just about low cost manufacturing but also about a rising middle income group that will add around 850 million people to its ranks between 2009 and 2030.

Second, China is about urbanization, too. The country was once just about "the big four": Beijing, Shanghai, Guangzhou and Shenzhen. Now it is also about second- and third-tier cities such as Chengdu, Chongqing, Wuhan, Xi'an and Qingdao. In fact, in the near future, more than 80 percent of China's middle income group will be living in the second- and third-tier cities. No wonder these cities are attracting many Australian architects to help build or rebuild them.