(Agencies)
Updated: 2007-08-31 17:13

Chinese mainland has overtaken Japan as Australia's number one trading partner, according to official figures released Friday.

The Australian Bureau of Statistics (ABS) said that Australia's trade with the Chinese mainland was worth 50.5 billion dollars (US$41.4 billion) in the 12 months to July, while trade with Japan reached 49.7 billion.

It is the first time in 36 years that Japan has not topped the list of Australia's international trade partners.

"This is very much a big deal. For the past 36 years, Japan has retained the mantle of Australia's largest trading partner," Commsec chief equities economist Craig James said. "Now that mantle is held by Chinese mainland."

Japan remains the main destination for Australian exports at 32.4 billion dollars, while Chinese mainland is the main supplier of imports to Australia at 27.5 billion dollars.

James said trade between Australia and Chinese mainland had doubled in the past three years and expected bilateral ties to continue to flourish.

"The trading, cultural and political relationship with China will grow more and more important in coming years," he said. "Australian companies that fail to embrace the importance of China to the Australian economy will quickly fall behind."