Both China and Australia have participated in the process of growing economic globalisation in recent decades. This paper compares trends in the openness of China’s and Australia’s economy in terms of international trade and foreign direct investment, and then examines global trends in international tourism. This dimension of growing globalisation indicates an accelerating trend in the second half of the 20th century. The article shows how China was able to take advantage of this trend as a consequence of its economic reforms and opening up to the outside world. A mini-case study of the expansion of China’s tourism industry and its evolving policy framework is provided. Australia also has obtained significant growth in its tourism industry in recent decades, particularly its international tourism sector. The reasons for this are outlined and some comparisons are made between China’s and Australia’s tourism industry. A discussion of the observed trends follows. It is argued that while growth in inbound tourism has fostered economic growth, this has been obtained at the price of increased economic vulnerability of this industry. It is speculated that while growing globalisation of industry may promote economic growth, it also often has the unwelcome effect of raising the economic vulnerability of industry