Best days to come on China trade: Bishop

Despite a slow-down in Chinese demand for Australian resources, Foreign Minister Julie Bishop is confident the best days of the trade relationship are yet to come.

She made the prediction as the Australian China Business Council released its 2014 trade report highlighting boom areas for Australian agriculture, manufacturing, real estate, tourism, education and other professional services.

Ms Bishop acknowledged there were some challenges ahead as China's economic growth comes off the boil.

Industrial over-capacity, a property market slowdown and banking risks remain barriers to growth.

But there was still cause for optimism.

"I'm confident the best days of the Australia-China relationship lie ahead of us," Ms Bishop said in Canberra on Wednesday, adding investment growth was one of the greatest signs of China's confidence in Australia.

Ms Bishop said it was extraordinary there was nearly as much Chinese investment in Australia as in the United States.

Council president John Brumby said China's economic re-balancing was generating greater demand for consumer goods, high-end manufacturing and services.

Australian produce, tourism and education were in the sights of China's growing middle class.

"Increasingly now, firms in the non-resource sectors are positioned in the front line and hold the key to broader-based growth between China and Australia," Mr Brumby said.

Australia and China signed a free-trade agreement in 2014.

Two-way trade with China stood at $160 billion in 2013/14.

KEY FINDINGS OF AUSTRALIA CHINA TRADE REPORT

* Two-way trade with China per Australian household increased from $3400 in 2009 to $16,985 in 2013.

* Direct trade with China contributes 5.5 per cent of Australia's national income.

* One in 58 workplaces directly exports to China.

* 200,000 Australian jobs sustained by direct exports to China.

(Source: Australia China Business Council trade report)