Xinhua Silk Road - Belt and Road Portal, China's silk road economic belt and 21st Century Maritime Silk Road Website Xinhua Silk Road - Belt and Road Portal, China's silk road economic belt and 21st Century Maritime Silk Road Website
Subscribe CustomBlackClose

Belt & Road Weekly Subscription Form

download_pop

Research ReportCustomBlackClose

The full edition of the report is available at Xinhua Silk Road Database. You can click the “Table of Content” to have a general understanding of it.

Click on the button below to create your account and get immediate access to thousands of articles.

Start a Free Trial

Xinhua Silk Road Database
Investment

Chinese investment in Australia fell over 50 percent in 2019, despite record trading year

June 11, 2020


Abstract : Chinese investment in Australia fell by 58 percent in 2019, despite also recording a jump in bilateral trade, according to a new report by the University of Sydney and financial services giant KPMG.

SYDNEY, June 11 (Xinhua) -- Chinese investment in Australia fell by 58 percent in 2019, despite also recording a jump in bilateral trade, according to a new report by the University of Sydney and financial services giant KPMG.

The study's co-author, Professor Hans Hendrischke from the university's Business School and China Studies Centre told Xinhua on Wednesday that the decline in Chinese investment had also been the case for other developed countries.

"Chinese outbound direct investment into all developed countries has decreased over the last three years after a big spike in 2015 and 2016," Hendrischke said.

"Australia was for some years during the mining investment boom the largest recipient country for Chinese outbound direct investment and then fell back to second place behind the U.S."

According to the report, in 2018 Chinese investment in Australia was worth 5.9 billion U.S. dollars, falling 58 percent to 2.4 billion U.S. dollars in 2019.

Meanwhile, it stated that in the 2018-2019 financial year, bilateral trade between China and Australia was up 21 percent to a record 163 billion U.S. dollars.

The largest transaction in 2019 was the Mengniu Dairy Company's acquisition of Bellamy's Australia for one billion U.S. dollars, accounting for 43.7 percent of total Chinese investment.

The figures come from the report 'Demystifying Chinese Investment in Australia' for June 2020, a joint effort by the University of Sydney and KPMG.

Head of Asia & International Markets at KPMG Australia and report co-author, Doug Ferguson, said that since 2008, Chinese companies had invested over 107 billion U.S. dollars into Australia, which had been an important contributor to local economic growth.

With the global impact of COVID-19, the economic relationship between Australia and China stands at a particularly important juncture, with the potential to play a significant role in both countries' fortunes moving forward.

"When the economic recovery from the COVID-19 pandemic gains pace, Australia will be keen to expand domestic manufacturing. Developing new manufacturing in Australia will require investment capital on the one hand and demand for Australian manufactured products on the other," Hendrischke said.

"Australia's most immediate market opportunities are in China where Australian agribusiness and its products have a strong reputation. Cooperation with Chinese investors who have access to the Chinese market will be among the first opportunities for improving bilateral economic relations." Enditem

Scan the QR code and push it to your mobile phone

Keyword: China-Australia outbound investment

Reading:

China donates chemicals, equipment in fight against locusts in Uganda

SW. China's Sichuan launches 416 modern service projects with total inv't demand approaching to RMB 1.48 trln

China's mobile phone shipments reach 33.76 mln units in May

European businesses remain strongly committed to China: survey

China Focus: Online reservation heralds new era in China's tourism industry

Most Read

Write to Us belt & road login close

Do you want to be a contributor to Xinhua Silk Road and tell us your Belt & Road story? Send your articles to [email protected] and share your stories with more people.

Click on the button below to create your account and get im http://img.silkroad.news.cn/templates/silkroad/en2017te access to thousands of articles.

Start a Free Trial

Ask Us A Question belt & road login close

If you have any questions, please enter them in the box below.

Identifying code Reload

Write to Us belt & road login close

Do you want to be a contributor to Xinhua Silk Road and tell us your Belt & Road story? Send your articles to silkroadweekly@xinhua.org and share your stories with more people.

Click on the button below to create your account and get im http://img.silkroad.news.cn/templates/silkroad/en2017te access to thousands of articles.

Start a Free Trial