China's Post-WTO Transformation

28 March 2012

CSC academic member Prof Hans Hendrischke and Mark Epper, KPMG, analyse the growing inflow of Chinese capital to Australia in their article "China's Post-WTO Transformation" recently published in APEC Currents.

They stress that, "China's growing outbound direct investment (ODI) has significant implications for Australia's economic future. A further US$1 trillion to US$2 trillion of Chinese direct investment will be dispatched overseas by 2020, according to recent estimates. Australia represents approximately 2.5 per cent of China's global ODI stock today. If a mere 3 per cent of China's expected capital outflows target Australia over the coming decade, the volume of investment will be massive."

They conclude, "A deeper understanding of China's ODI into Australia is needed to help governments and businesses to respond to and make use of Chinese ODI to the benefit of Australia's relations with China. Since Chinese governments play an important role in facilitating ODI, Australia needs to utilise multiple channels at all levels of government - federal, state and local - to speak to China's central, provincial and municipal governments respectively, as well as other stakeholders and businesses about investment opportunities in Australia."

To read the whole article, please visit APEC Currents.