News Formal

Chinese Investment in Australia Hits Two-Decade Low Amid Economic Slowdown

  • 📰 theage
  • ⏱ Reading Time:
  • 62 sec. here
  • 9 min. at publisher
  • 📊 Quality Score:
  • News: 49%
  • Publisher: 77%

Economy Nyheter

Chinese Investment,Australia,Economic Slowdown

Chinese investment in Australia has reached its lowest level in almost two decades, excluding the pandemic years, and is expected to continue declining as the Chinese economy slows down. According to a report by KPMG and the University of Sydney, Chinese investment in Australia fell by 37% to $1.36 billion in 2021, marking the lowest level since 2006. The decline in Chinese investment is attributed to rising tensions between the two countries.

​Chinese investment in Australia has plunged to its lowest level in almost two decades, excluding the pandemic years, and is expected to continue to contract as the world’s second-largest economy slows.

The decline of Chinese investment in Australia is partly to blame on rising political tensions between the two countries that escalated under the Morrison government, particularly after the then prime minister Scott Morrison called for a global inquiry into how the COVID-19 outbreak started. This declining trend occurred as successive Australian federal governments tightened restrictions on foreign investment in a number of sensitive sectors, from infrastructure to critical minerals. Critical minerals, among them nickel, lithium and cobalt, are important to the green energy transition, advanced manufacturing and defence technology.

The KPMG and University of Sydney report said a further reason Chinese investment in Australia had declined was that Chinese money was increasingly being redirected towards Belt and Road Initiative projects. Last year, Chinese investment in those projects rose 28 per cent to $US32 billion. An example of this threat was the billions of dollars of Chinese investment that flowed into Indonesia, helping it develop into a global nickel hub. The investment and technology from Chinese companies enabled Indonesia to process raw ore into higher-grade nickel, which Australia had done.

 

Tack för din kommentar. Din kommentar kommer att publiceras efter att ha granskats.
Vi har sammanfattat den här nyheten så att du kan läsa den snabbt. Om du är intresserad av nyheterna kan du läsa hela texten här. Läs mer:

 /  🏆 8. in SE

Sverige Senaste nytt, Sverige Rubriker

Similar News:Du kan också läsa nyheter som liknar den här som vi har samlat in från andra nyhetskällor.

Global investment: Australia is not competitive, say CEOsThe Business Council of Australia is pushing the treasurer to make Australia more attractive for investment to boost productivity and economic growth.
Källa: FinancialReview - 🏆 2. / 90 Läs mer »

Sydney luxury property: The suburbs Australia’s top investment bankers livePrivacy, prestige and access to the best schools in Sydney mean these suburbs are where deal makers call home.
Källa: FinancialReview - 🏆 2. / 90 Läs mer »

BCA tells Prime Minister Anthony Albanese Australia needs a review of foreign investment rulesBig business wants federal Labor to review settings for overseas capital, including in renewables projects, amid warnings of a foreign investment drought.
Källa: FinancialReview - 🏆 2. / 90 Läs mer »

ASEAN: Australia’s South-East Asia investment problem is about them, not usSouth-East Asian nations need to become attractive to foreign investors through deregulation and establishing independent and incorruptible legal systems.
Källa: FinancialReview - 🏆 2. / 90 Läs mer »

‘I want a future made in Australia’: Albo pours $1bn investment into solarPrime Minister Anthony Albanese has unveiled the government’s Solar Sunshot program, hailing it as “one of the most significant” announcements of his term.
Källa: SkyNewsAust - 🏆 7. / 78 Läs mer »