China-Australia relations: Canberra open to Chinese investors but security issues key, investment chief says

Foreign Investment and Review Board (FIRB) chair David Irvine said that 20 per cent of approved transactions in the past year had some form of Chinese participation

China is Australia’s largest trading partner, but relations have soured in recent years and Beijing has limited imports of coal, wine and barley amid the dispute

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Better known for its wheat and barley, Australia is forecast to harvest a record canola crop of more than 5 million tonnes this season, according to government data. Photo: Bloomberg

Published: 2:30pm, 14 Oct 2021

Australia is not shut to Chinese investors but national security concerns and the protection of critical infrastructure are now key factors determining deal approvals, the head of its Foreign Investment and Review Board (FIRB) said on Thursday.

Chinese investment in Australia has fallen by over 50 per cent to about A$12 billion (US$8.8 billion) over the past four years, driven by stricter capital controls by Beijing, and by a deterioration of the relationship between the countries.

“We run a non-discriminatory investment policy … both in terms of areas in which you can invest … [and] in terms of the provenance, the country from which the investment comes,” said FIRB chair David Irvine at the Citi Investment Conference.

He highlighted that 20 per cent of approved transactions in the past year had some form of Chinese participation.

We continue to welcome investment applications from Chinese interests. If they’re in areas of national security interest, they’ll be subject to the same sorts of consideration as other people investing in those areas

David Irvine

“We continue to welcome investment applications from Chinese interests. If they’re in areas of national security interest, they’ll be subject to the same sorts of consideration as other people investing in those areas,” he added.

China is Australia’s largest trading partner, with exports reaching a record A$19.4 billion in July. However, diplomatic relations have soured in recent years and China has limited imports of coal, wine and barley amid the dispute.