Budding Australian businesses are tapping the largest consumer market in Asia by taking part in the China International Small and Medium Enterprises Fair (CISMEF).

More than 250 Australian small and medium businesses participated in the event held in Guangzhou. Australia's ambassador to China, Dr Geoff Raby, said, “China is now the second largest economy in the world... The potential for growth is there.”

Australian exports to China jumped 18.1 percent or $46 billion in the past financial year. “China is our largest export market and is now bigger than Japan,” Dr Raby confirmed.

The ambassador said, “Australia has a high brand recognition and 360,000 Chinese tourists came to Australia last year.” Aside from this, China is also Victoria's second largest export destination, with New Zealand being the first.

CISMEF is the biggest showcase for Australian smaller businesses overseas and is being overseen by Australian export arm, Austrade.

Dairy producers like Murray Goulburn joined the fair in order to expand its sales of infant formula. The Chinese-favored multivitamin products were also exhibited. Australian-Chinese businessman Karl Ye, who runs a shop called Aunew in Beijing, is exhibiting the vitamins along with Beechworth Honey, cosmetics, and wine.

Director George Ghinis of Adelaide-based Altura Coffee sees a potential to set up cafes, franchises, and sell equipment and coffee into China. “They are becoming very Westernised and are starting to drink coffee,” he said.