China-Australia relations: Chinese investment in Australia plummets in 2020 amid tensions
- Value of deals fell by more than 60 per cent, according to Australian National University study
- Coronavirus and tougher Australian scrutiny propelled fall, researcher says
The annual tracking study from the university’s East Asian Bureau of Economic Research recorded A$1 billion (US$783 million) of Chinese investment in 2020, consisting of real estate (45 per cent), mining (40 per cent) and manufacturing (15 per cent) deals.
“It reflects the effects of Covid but also more scrutiny of foreign investment by the Australian government, particularly that from China,” he said.
Australia announced a shake-up of its foreign investment laws in 2020 to give the government the power to veto, or force the sale of a business if it created a national security risk.
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Treasurer Josh Frydenberg said in June the national security test would be applied to telecommunications, energy and utilities firms, and businesses that collect data.