Does Australia Need China??

The difference is we live in a liberal democracy with freedom of speech and all those grand liberties that democracy affords us. You might think that is sensationalist but maybe you just don't get what it means to have freedom of speech and press in a functioning democracy. Maybe you want to check out the persecution of African students in China of late or even revisit the plight of the Uyghurs. Some of that stuff would make the most extreme fascist blush and the censors would never let the masses hear about it in CCP media outlets or online.

Mistreatment of Africans in Guangzhou threatens China's coronavirus diplomacy.

 

Chinese investment into Australia collapses

The Australian

www.theaustralian.com.au/nation/politics/chinese-investment-slows-to-a-trickle/news-story/f4d97531405854ff724586601b5302bb

Chinese investment in Australia plummeted by more than 60 per cent last year to $3.4bn, as Beijing shifted capital towards developing nations that have signed up to Xi Jinping’s signature Belt and Road Initiative.

A new report reveals that despite record trade between the two countries, Chinese investment in Australia in 2019 was at its lowest annual level since its 2010 fall from boomtime heights, two years after Chinese minerals and energy sector deals brought in more than $20bn.

The investment dive is part of a broader trend of falling Chinese investment in Western countries such as the US and Canada, as Beijing directs capital flows to reinforce its strategic interests elsewhere in the world.

 

China urges students to rethink Australia plans

no more Asian money for Australian properties?

 

The data from DFAT about total foreign investment in Australia is interesting. Fears about the level of Chinese investment are often based on things other than the sum total of their investment here. Consider that in 2019 Australian direct investment in China was ~$85billion compared to Chinese investment here of ~$78billion. So we invest more in China than they do here. Considering that Chinese investment in Australia constitutes only 2% of foreign investment, the Australian economy is not going to fall off a cliff as some fear it will if this investment subsides.
Statistics on where Australia invests | DFAT

I think the area of greatest concern is Chinese investment in things strategic like the Port of Darwin alongside water and energy assets.


Which economies invest in Australia?
The United States and United Kingdom are the biggest investors in Australia, followed by Belgium, Japan and Hong Kong (SAR of China).

China is our ninth largest foreign investor, with 2.0 per cent of the total. However, the levels of Hong Kong (SAR of China) and Chinese investment in Australia have grown significantly over the past decade.

The table below shows the top 20 foreign investors in Australia at the end of 2019. Yearly values...include both direct, portfolio investment and other investment.

Which economies invest in Australia? 2019
Rank in 2019 Economy % of total
1 United States 25.6%
2 United Kingdom 17.5%
3 Belgium 10.4%
4 Japan 6.3%
5 Hong Kong (SAR of China) 3.7%
6 Singapore 2.6%
7 Netherlands 2.3%
8 Luxembourg 2.2%
9 China 2.0%
10 New Zealand 1.7%
11 Canada 1.6%
12 Switzerland 1.5%
13 Germany 1.3%
Based on ABS catalogue 5352.0. Last Updated: May 2020.
Statistics on who invests in Australia | DFAT

 

China has just started to step up "the game".. first tariffs on some of our food exports, last week warning on tourism, today on studying in Australia. I wouldn't be surprised if there are more coming that might start to hurt. All because of our recent comments, and probably for us not "playing the game" on things like Belt & Road, and whatever else we do that doesn't work in their favour.

I can't see the current Government soothing over the situation either, on previous reactions, they have just made it worse. Agree or disagree with the Government on this, it is going to have an effect.

If you rely on China for whatever you do, I'd be quite concerned about these developments. "Do we need China?". Well we're going to find out in the next 12-24 months for sure.

 

It is not just direct investment in business, in fact I'd argue that is just a small part.. but in indirect items like Tourism and Education, and construction from newly settled residents... plus the flow on effect from all of those. Some of our Universities are saying they are near financial collapse presently due to the collapse in student numbers, mostly Chinese.

 

China is increasingly exerting its influence over the globe. Now, it has India in its sight. Australia cannot pin all its hope on China. No dynasties last forever.

 

Yes, I realise that there will be a hit to those industries and to the broader economy. However, we should be wary of thinking that we are the only nation that heat is being applied to. The Chinese are posturing, like they are with Canada, The Netherlands, and others who they perceive to have criticised them. Chinese students will still come here, they will still travel here and continue to want to migrate here and China will have to buy our iron ore if they want to develop their belt and road initiative. The standard of living here, our environment, our proximity to China, and our open economy will guarantee this.

Just like Chinese students will continue to study in the U.S despite their ongoing feuding with Trump; the world will continue to spin around its axis.

 

China is not Asia don't you know that?

 

+1 for this. The wealthy and upper middle class families in China most likely still want to send their kids to developed Western countries like US, Canada, Australia, UK, etc. There may be some short term drop but most likely due to the COVID-19 health crisis and economic recession, not much impacted by the CCP government.

 

What is considered as short-term - 12, 18 24 months? Even on a 12 month period, its coinciding with the World Bank forecasting the global economy about to verge into its deepest recession since World War II. This doesn't sound like a short-term issue and the extent of this global downturn is probably why Josh Frydenberg is being very wary of talking about a 'V-shaped' recovery and ScoMo only last week suggesting a 5 year recovery.

These are two people who are not generally known for their pessimism towards the Australian economy and now sounding very much like preparing the country for a hard ride.

 

I am not debating about the negative impact on our economy in the next 1-3 years. Even without this political mess with China, Australia is facing the worst recession/economic challenges in several decades. What I was trying to say is about the appetie for Western education and potentially immigration is always there in China and other Asian countries regardless of what governments are saying.

 

Less Chinese students might actually work out ok for us. Just bring in more students from less wealthy countries. Yeah they won’t spend as much or pay as high rents but they will be more likely to accept lower wages and poorer working conditions. After they finish their education they will then be skilled and hopefully still willing to do more for less to stay in the country. Might be just what a lot of businesses need.

 

Exploitation of the vulnerable is not a great example of a progressive society.

 

What exactly is the mistreatment? Not very clear from this article. I hope it’s not as drastic as taking their kids away from them which I think happened under a democracy with freedom of speech

 

Not sure what this includes. But at USA with $1 trillion investment (when total Aust GDP is only $1.7 trillion), it probably includes things like Blackrock et co each dropping a few billions of dollars in and out of share market investments every two weeks.

 

Google is you uncensored friend @Omnidragon.

Unfortunately we are able to discuss this and are free to expose things that we don't like. Terrible business that freedom.

 

Sounds almost jealous.

 

Not really. Just pointing out the fact that those numbers don’t seem to accord with GDP statistics. Critical thinking that’s all.

And selective data as always. I can equally make a point that the USA is negligible for an export market.

List of the largest trading partners of Australia - Wikipedia

 

Didn’t stop kids being taken away though... I think many people like yourself seem to think their system is superior and people in other systems don’t know better. The irony is the feelings are probably mutual on the other side