podcast

Guest: Li Wei, Lecturer in International Business, University of Sydney Business School

Host: James Laurenceson, Deputy Director, Australia-China Relations Institute (ACRI), University of Technology Sydney

What are the expected effects of China’s recently introduced capital controls on the Australian economy? How do Chinese companies view Australia’s foreign investment approvals process? Do differences in values between Australia and China adversely affect the investment relationship?

Li Wei joins James Laurenceson to discuss current trends in Chinese investment in Australia, and factors that will drive the investment relationship in future.

China’s capital controls do not constitute a new or surprising development. In the case of Australia, Chinese companies had already begun to increase investment in areas that the Chinese government now explicitly encourages. In areas such as agriculture and infrastructure, more growth in Chinese investment can be expected.

In general, Chinese companies understand that Australia’s foreign investment approvals process sees most proposals being accepted. They are also familiar with operating in a regulatory environment subject to frequent change.

Rather than highlighting differences in values between Australia and China, investment affords the opportunity for companies from both countries to embark on projects with shared values.

Chinese companies consider Australia a stable and mature economy that is ruled by law. Australia should be mindful of maintaining this reputation in order to attract investment in the long-term.

Theme music by Sam J Mitchell.