Chinese investment in Australian economy falls by $1.7 billion
Investment in Australia by Chinese companies plummeted nearly 70% last year to its lowest level since 2007, according to a report released today.
Chinese companies spent $778 million in Australia in 2021, up from $2.5 billion in 2020, according to the study by KPMG and the University of Sydney.
The number of transactions last year nearly halved to 11 from 20 in 2020.
Four trade deals related to the minerals sector accounted for the majority of Chinese investment in Australia last year.
Trade disputes between Canberra and Beijing, restrictions on money leaving China and tougher foreign capital laws in Australia have forced Chinese investors to look elsewhere.
Meanwhile, Wine Australia, the federally backed wine marketing and research body, said it would close its physical office in Shanghai as punitive tariffs on its products have reduced business opportunities in China. .
Wine Australia said it made the decision after consulting with Australian winemakers and grape growers, reports the Bloomberg news agency.
Australia’s wine industry has become a major casualty of the trade dispute between the two nations.
China – traditionally the biggest market for Australian winemakers – has imposed a 220% tariff on exports in 2020.
Prime Minister Anthony Albanese told China last month that it must lift trade bans on Australian products if it wanted to improve relations between the two countries.
He said trade sanctions on exports, such as barley, wine, coal and seafood, were unjustified.
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“It was China that imposed sanctions on Australia. There is no justification for this. And that is why they should be removed.”