This article analyses the current position and potential problems in the Australia-China financial service trade. The world’s financial service trade is underdeveloped compared with world merchandise trade. Similarly, the
Australia-China financial service trade is also  underdeveloped compared with bilateral merchandise trade. The major reasons lie with the late development of
bilateral financial service trade, weak promotion by the Australian Government and China’s immature legal and market system. The conclusion oflers suggestions on how both sides might achieve success in the area offinancial service trade in the negotiation of a bilateralfiee-trade agreement.