Overseas State Owned Enterprises (SOEs) have made a significant contribution to the growth of the Australian economy in the past decade. Without the equity and debt, in particular, Chinese SOEs have arranged and invested in Australia's largest gas and mining projects, many would not have proceeded.
For many years, Australia has enjoyed positive experiences with SOE investment from major trading partners, including Japan, South Korea, Singapore and USA, but our experience with Chinese SOE investors is relatively new. Over time the economic contribution, coupled with positive market behaviour and integration into local society have been important factors for foreign SOEs gaining public support and trust. There is a time and trust equation at play: the longer Australia interacts with foreign investors, the less concerned or resistant we appear to be.
For Australia to attract Chinese SOE investment on a sustainable basis in an increasingly competitive environment, we must better understand their operations, motivations and aspirations. Australian governments, companies and communities must continue to work together to ensure that our policies and regulations are welcoming, globally competitive and consistently applied for all foreign investors, while addressing the associated risks. Chinese SOEs need to work harder at demystifying their investment intentions, communicating with Australian constituents, and integrating with our society.
The Business Council of Australia has released a Discussion Paper on Foreign Investment and State-owned Enterprises: Managing the Risks to Maximise the Benefits that draws on the findings of the report commissioned by the BCA and undertaken by KPMG and the University of Sydney.
China News from the Business School
Chinese investment demystified: Minister launches KPMG - University of Sydney Business School website 11 Apr 2014
The first interactive online resource designed to dispel the myths surrounding Chinese investment in Australia and inform debate on the issue has been launched in Shanghai today by the Commonwealth Minister for Trade and Investment, Andrew Robb. More
Turning point for Chinese investment into Australia - New research a wakeup call for Australia 17 Mar 2014
The latest report into Chinese direct investment by KPMG, The University of Sydney's China Studies Centre and Professor Hans Hendrischke of the University of Sydney Business School titled, Demystifying Chinese Investment in Australia, March 2014 Update, finds Chinese investment in Australia declined by 10% during 2013, against a backdrop of an overall global increase in Chinese outbound investment during the year. More
China connection blossoms 07 Nov 2013
Despite perceptions that Chinese investors are buying up large areas of Australian farmland, new research has found that China is ... More