CHINESE INVESTMENTS IN AUSTRALIA SLASHED BY NEARLY 50%

Chinese investments in Australia have gone south for the third straight year, mirroring the souring economic ties between Beijing and Canberra and the policy of China to punish its big trading partner for seeking an independent investigation into the origins of the COVID-19 virus in Wuhan.

Researchers from the Australian National University said Chinese investment plunged from A$4.8 billion (US$3.5 billion) to only A$2.5 billion last year. Prof. Peter Drysdale, who led the data research, said the A$1.43 billion purchase of infant formula producer Bellamy’s Australia by China’s Mengniu Dairy accounted for more than half of that investment. It was the third consecutive year that Chinese investment in Australia dropped since peaking at A$15.8 billion in 2016. The steep fall far outpaced a global decline in China’s overseas ventures of 9.8% last year, reflecting the bilateral political tensions, the Agence France Presse (AFP) reported.

In June, Australia announced tougher measures to block or overturn new foreign investments deemed to compromise national security – a move widely viewed as an effort to limit growing Chinese influence. The country has barred Chinese telecoms giant Huawei from being a major player in its 5G rollout owing to concerns about its relationship with state security agencies, a decision that riled Beijing.

China – Australia’s biggest trade partner – has since imposed tariffs on Australian products from beef to barley and has discouraged Chinese students and tourists from heading there. “(In) the last few years, clearly Chinese investors have found the investment environment in Australia less certain and have been more cautious about undertaking investment in Australia,” Drysdale said.

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