Read: Observations of Chinese investment in Australia

Executive Summary

How new is China’s ‘Go Out’ strategy?

• Twin of the ‘invite in [investment]’ strategy
• Extension of outward investment since 1950s
• WTO membership a policy enabler

An SOE, what is it?

• Government-owned ≠ government-controlled
• A corporation, not a bureaucratic unit
• FDI a corporate initiative, subject to gov’t approval
• SOE executive held responsible for FDI outcome

Toward a less eventful investment relationship

• Before the border familiarisation for aspiring Chinese investors
• More focus on company track record
• Less focus on country of origin and ownership structure
• Foster a growing community of Australian and Chinese professionals interested in succeeding in each other’s societies

Why Australia?

• Resource endowments, geographical proximity
• Predictable government, clear rules, stable society
• Value in brand-name building among OECD markets

Investment in China-Australia Relations

• Fundamentals remain strong
• FIRB and state regulatory systems a learning process
• Regional geostrategic dynamics a factor on the horizon?

Toward a less eventful investment relationship

• Before the border familiarisation for aspiring Chinese investors
• More focus on company track record
• Less focus on country of origin and ownership structure
• Foster a growing community of Australian and Chinese professionals interested in succeeding in each other’s societies