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Chinese Media turn attention to Dean's stand on Investment

30 Aug 2012

The Chinese media has given wide coverage to a recent article in which the Dean of the University of Sydney Business School, Professor Geoffrey Garrett, urged Australia to adopt "pragmatic and level headed policies" on investment by Chinese State Owned Enterprises.

Professor Garrett's article, first published in the national newspaper, The Weekend Australian, says that emotive concerns about Chinese Communist Party control of Australia's natural assets are misguided.

The article, titled "What's wrong with Chinese Investment in Australia?", has now been republished by nearly 20 highly influential media outlets across China including the China Daily, Xinhua News Agency, the Guangming Daily and the People's Daily.

It has also been carried by the China targeted online services of the New York Times, the Wall Street Journal and Yahoo as well as the official Chinese government website, China.com.cn.

"The level of media interest in this issue is a clear indication of just how seriously China views its relationship with Australia," Professor Garrett said. "It is an economic relationship that, if well managed, will ensure that we reap the full benefits of the resources boom long into the future."

A recent University of Sydney-KPMG study showed that almost all of the $50 billion of Chinese investment in Australia in the past five years has been in the highly sensitive mining and energy sectors.

"Resource security is no doubt the driving motivation behind Chinese investment in Australia," Professor Garrett said in his article. "In order to ensure that lots of our natural resources head China's way with some certainty of supply, Chinese firms will continue to act in a commercially responsible manner."

Professor Garrett says that it is hard to see how China could use ownership of Australian raw materials companies to harm our national interest when its fundamental need is to get as much of our minerals, energy and agricultural wealth onto the world market, to feed Chinese demand and to keep world prices low.

"There will always be defence and security reasons to deny foreign investment in Australia, but that doesn't mean throwing a blanket over Chinese investment here," the article concluded.

Outlets that carried the article "What's wrong with Chinese Investment in Australia?":

China Daily, Wall Street Journal, New York Times, Global Times, YAHOO, Xinhua, Peoples Daily, QQ, TOM, Guangming Daily, China.com, 163.com, SINA, China.com.cn, SOHU and Qinalong.