Australia-China Services Trade: Opportunities and Challenges of a Free Trade Agreement
Beijing, 24 April 2006
Session Two: Architecture, Engineering and Construction
Presentation by John Richardson, Director, Cox Richardson
An Australian Architect's View.
I speak as a practicing architect, not as a trade negotiator. Much of the jargon is lost on me and most of my professional colleagues, but I do know about the delivery of architectural services.
I am a director of COX Architects, an Australian architectural practice employing some 350 people in Australia, the Middle East and, importantly, in China. We have offices in Shanghai and here in Beijing.
COX, along with other Australian architects, has been working in China for more than 20 years.
Architectural practices in Australia range from sole practitioners to firms with more than 500 staff. Although most are small businesses even small practices have demonstrated interest in China and are working in China. We understand that the 10 largest practices in Australia are earning between 30% and 55% of their total income from work outside Australia. China represents a significant component of this trade. The profession has demonstrated a very keen interest in working with China.
The Royal Australian Institute of Architects represents some 9,000 members, of which over 5,400 are registered practicing architects. The Institute supports the interest of its members in China. The Institute also supports the liberalization of architectural services in general and in China in particular. This reflects the fact that Australia has a very liberal market for architects, a liberalization not always reflected throughout the rest of the world.
The Australian market is very liberal for two fundamental reasons. Australian architects are not permitted to operate under a fixed fee scale regime under competition legislation and anyone can design a building in Australia. Registered architects are entitled to use the title architect only. It simply recognizes education. Construction drawings do not have to be signed by an architect
Architects speak the same architectural language throughout the world. Architects share common interests in design, technology, professionalism, the balance between the public and the private realm, the history of architecture, art and culture. Consequently our profession is a significant bridge builder between countries and cultures. In a sense Australian and Chinese architects speak the same language. Relationships are easier to create and sustain.
Australian architects are keen to continue to collaborate on projects in China and would like to expand that activity. It is interesting to note that the two most famous icons in Sydney, the Sydney Harbour Bridge and the Sydney Opera House, were both post the colonial period and both the result of collaboration between designers from overseas and Australians.
What do we offer?
Australian universities are currently training architecture students from China. Australia provides high standards of architectural education for Chinese students in a great student environment. Education in Australia develops important personal relationships and confidence between Australian and Chinese architects.
Australian architects are collaborating on a number of important projects in China. We bring cutting edge design skills to China.
- Sports projects include the new Shenzhen Aquatic Centre (COX), a development of the Sydney Olympic Aquatic Centre.
- Beijing Olympic projects include the Olympic Swimming Centre (PTW), the Olympic Village (PTW) and the Olympic Sailing Centre (COX).
- Infrastructure projects include the urban design of freways
- Transport projects include Qingdao airport (Woodhead)
- Residential and commercial projects include Jinqui Gardens (COX)
- Waterfront redevelopments include the Nanjing Waterfront (COX)
- Specialist skills in sophisticated, long span, light weight structures.
- Sustainable design.
Australian architectural firms tend to focus on architecture, interior design, urban design and planning. We tend not to combine engineering with architecture in multi-disciplinary practices as in China, but in practice the two professions do work closely together.
There has been a significant shift in architectural thinking to an emphasis on the importance of the public domain in Australian cities. This skill in urban design, the design of streets, places and parks, has great potential relevance to the vast number of new cities emerging in China.
Australia and China are in the same time zone. This creates enormous benefits in communication.
Our architecture profession relies on a confident relationship with our clients and our collaborators. Australian architects bring high levels of reliability and professionalism to the table. Our fees are flexible as there are no fixed architectural fee scales in Australia as pointed out before..
There are issues that affect our ability to deliver the best Australian architectural design services to China.
- China does encourage a fixed fee regime for different types of projects. This can create difficulty where Australian fees need to exceed the fixed fee regime.
- There are a number of rules and regulations that govern the delivery of architectural services in China. However the application of the rules may appear inconsistent, leading to confusion and uncertainty. For the continuation of the development of our relationship it is important that the investment climate for the establishment of architectural practices in China provides a level of certainty. We would welcome simplified wholly foreign owned enterprises (WOFE's).
- We do not support the requirement for a foreign service provider to reside in China for a minimum of 6 months per annum, or be registered in China. Architects operate internationally, not just in one country or another and a design contribution may be quite quick.
- There appears to be a lack of protection for intellectual property, both protection for design copyright and protection for trading names, leaving people free to copy an architect's design without licence or royalty, and to use an architect's trading name.
- There are difficulties also with repatriating funds overseas for architectural services provided on projects in China.
I have not dwelt on issues such as the exchange rate or currency value or different contract philosophies between Australia and China, but have focused on issues that may be addressed in an FTA between China and Australia.
Australian architects are keen to develop relationships with China. I hope this will assist that process.