China envoy warns of trade perceptions
Liu Yu, the commercial counsellor at China's consulate-general in Sydney, said at a China-Australia business conference last month she "still feels sad" about a 2012 Lowy Institute poll that found 56 per cent of Australians thought too much Chinese investment was permitted.
"The total size of Chinese investment covered a very small share of just 1 per cent in Australia's inbound investment," Ms Liu said, citing a 2012 report.
"In comparison, the US enjoys a share of 29 per cent, the UK 23 per cent and Japan 6 per cent ... Do you think this matches China's status as Australia's largest trading partner?"
A more recent Lowy Institute poll, released last week, found 57 per cent of Australians thought the federal government was allowing too much investment from China, with 41 per cent of respondents thinking it was likely the Asian giant would become a military threat to Australia in the next two decades.
Ms Liu said such perceptions "could be harmful to future development if ... not handled properly".
"China-Australia investment co-operation is not a zero sum game," she said, adding that Chinese companies were good corporate citizens, created jobs and were socially responsible in the countries in which they operated.
Ms Liu said she believed deeper Chinese investment in Australia would benefit local communities.
Audit and advisory firm KPMG said China's total accumulated investment in Australia reached $US51 billion at the end of 2012.
The Australia head of HSBC Bank, Tony Cripps, said recently he expected Chinese investment in Australian agriculture to grow significantly.
Food-related exports are expected to increase by 45 per cent by 2025, with Asia, and particularly China, playing a central role.
Foreign investment in farming has been a sensitive issue. About 11 per cent of Australia's farming land - about 45 million hectares - was at least partly foreign owned, 2011 figures show.
BusinessDay was a sponsor of Australia-China Business Week.
Frequently Asked Questions about this Article…
The article reports that Liu Yu, commercial counsellor at China's consulate-general in Sydney, expressed concern and said she “still feels sad” about polling that shows many Australians think too much Chinese investment is allowed. She argued China’s investment share in Australia was small and warned negative perceptions could be harmful if not handled properly.
According to the article, a more recent Lowy Institute poll found 57% of Australians thought the federal government was allowing too much investment from China, and 41% believed China was likely to become a military threat to Australia within the next two decades.
The article cites a 2012 report saying Chinese investment covered about 1% of Australia’s inbound investment, compared with 29% for the US, 23% for the UK and 6% for Japan, a contrast Liu Yu highlighted given China’s role as Australia’s largest trading partner.
Audit and advisory firm KPMG is quoted in the article as saying China’s total accumulated investment in Australia reached US$51 billion at the end of 2012.
The article reports that Tony Cripps, head of HSBC Australia, expects Chinese investment in Australian agriculture to grow significantly. It also notes projections that food-related exports are expected to increase by 45% by 2025, with Asia—and particularly China—playing a central role.
The article states that about 11% of Australia’s farming land—approximately 45 million hectares—was at least partly foreign owned according to 2011 figures. The story notes foreign investment in farming has been a sensitive political and community issue, which investors should be aware of when considering agricultural assets.
Yes. Liu Yu is quoted saying China-Australia investment cooperation is not a zero-sum game, and she described Chinese companies as good corporate citizens that create jobs and act responsibly in the countries where they operate, suggesting deeper Chinese investment could benefit local communities.
The article references Lowy Institute polling, comments from Liu Yu of the Chinese consulate-general in Sydney, an estimate from KPMG on accumulated Chinese investment, commentary from Tony Cripps of HSBC Australia on agriculture, and notes that BusinessDay was a sponsor of Australia-China Business Week.
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