A new report by KPMG and The University of Sydney found that Chinese companies invested just US$585 million in Australia in 2021, down from a peak of US$16.2 billion in 2008.
According to Chinese government data, China's foreign investment has not dropped during the Covid-19 pandemic and increased in both 2020 and 2021. In comments that riled China, Mr Albanese on Tuesday warned that China should learn the lessons from Russian President Vladimir Putin's"strategic failure" in invading Ukraine.
The comments drew criticism from Beijing, which said on Tuesday that Taiwan was"not a sovereign country" and could therefore not be compared to Ukraine. The clash came as Australia and China made moves in recent weeks to improve ties. Earlier this month, Australian Defence Minister Richard Marles met his Chinese counterpart, General Wei Fenghe, on the sidelines of the Shangri-La Dialogue in Singapore, marking the first high-level official contact between the two countries in more than two years.
The latest report on declining Chinese investment in Australia suggested that the fallout has also affected China's willingness to invest in Australia. The rush by Chinese firms from the 2000s onwards to buy Australian farmland, mining and energy businesses, and property and infrastructure assets appears to have ended.