Australia & China: Future Partnerships 2011
In the future it will be difficult, if not impossible, to have strong global or domestic business without a strong China business relationship, concludes new collaborative research from KPMG in Australia and the University of Sydney China Studies Centre into the future of reciprocal trade between Australia and China.
- Potential changes to regulatory restrictions on overseas investments by Chinese companies could prove a dramatic game changer.
- China wants to develop and finance Australian resources and infrastructure.
- China is beginning to place more emphasis on Chinese private corporate investment in Australia.
- There is potential for China, Japan and Australia to fully develop the respective advantages of their resources industries and agree on the structure of collaboration – such as a new 24-hour resources commodities trading centre.
- Australia is currently a target country for the drive of Chinese banks to head abroad.
The Growing Tide: China Outbound Direct Investment in Australia
Australia has been the biggest single destination for Chinese outward foreign direct investment (FDI) worldwide over the past six years with investments totalling more than US$38.4 billion.
This report, written in collaboration between KPMG and the University of Sydney China Studies Centre, charts the significance of China’s growing outbound direct investment and examines opportunities for Australian businesses to help meet Chinese demand.
- Incentives for Chinese firms to invest in Australia and other countries are changing and the desire of Chinese enterprises to head abroad is intensifying.
- The expected flood of Chinese capital seeking investment opportunities requires a strategic response from Australian businesses in order to realise the opportunities and maximise the benefits.
- To promote business interaction we need to define a powerful, consistent and persistent marketing and confidence building role for Australian governments in their dealings with Chinese counterparts.