Chinese investment in Australia plummets as tensions spiral
- Chinese investment Down Under plunged from US$3.5 billion to just US$1.8 billion last year
- Beijing-Canberra relations have nosedived in recent months after a series of diplomatic clashes, with China imposing tariffs on Australian products
Researchers from the Australian National University said Chinese investment Down Under plunged from Aus$4.8 billion (US$3.5 billion) to just Aus$2.5 billion (US$1.8 billion) last year.
Professor Peter Drysdale, who led the data research, said the Aus$1.43 billion purchase of infant formula producer Bellamy’s Australia by China’s Mengniu Dairy accounted for more than half of that investment.
It was the third consecutive year that Chinese investment in Australia dropped since peaking at Aus$15.8 billion in 2016.
The steep fall far outpaced a global decline in China’s overseas ventures of 9.8 per cent last year, reflecting the bilateral political tensions, Drysdale said.
“(In) the last few years, clearly Chinese investors have found the investment environment in Australia less certain and have been more cautious about undertaking investment in Australia,” he said.