Australia open to China investors but security issues crucial - FIRB
Reuters
Published Oct 14, 2021 12:02AM ET
Updated Oct 14, 2021 12:18AM ET
By Paulina Duran
SYDNEY (Reuters) - Australia is not shut to Chinese investors but national security concerns and the protection of critical infrastructure are now key factors determining deal approvals, the head of its Foreign Investment and Review Board (FIRB) said on Thursday.
Chinese investment in Australia has fallen https://www.reuters.com/article/australia-china-investment-idUSL4N2CP1M1 by over 50% to about A$12 billion ($8.86 billion) over the past four years, driven by stricter capital controls by Beijing, and by a deterioration of the relationship between the countries.
"We run a non-discriminatory investment policy... both in terms of areas in which you can invest ... (and) in terms of the provenance, the country from which the investment comes," said FIRB Chair David Irvine at the Citi Investment Conference.
He highlighted that 20% of approved transactions in the past year had some form of Chinese participation.
"We continue to welcome investment applications from Chinese interests. If they're in areas of national security interest, they'll be subject to the same sorts of consideration as other people investing in those areas."
China is Australia's largest trading partner, with exports reaching a record A$19.4 billion in July. However, diplomatic relations have soured in recent years and China has limited imports of coal, wine and barley amid the dispute.
Australia last year introduced the biggest reform of its foreign investment laws https://www.reuters.com/article/us-australia-investment-idUSKBN23C01J in almost half a century, including giving the government the power to force the sale of a business if it creates a national security risk.
Irvine, a former Australian intelligence chief, said that the backdrop of those reforms was the recognition that a growing element of global warfare is the disruption of critical infrastructure and Australia must take protecting that into consideration, something other countries are also doing.
"They say, Australian environment is difficult and yes I hear those complaints all the time. But Australia is actually not alone in taking greater account of national security issues in its investment regimes."
Get The News You Want
($1 = 1.3539 Australian dollars)
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.