The Chinese government has in recent times stopped investing in Australian assets. This is due to growing animosity between both nations.
China limits capital investments in Australia
According to the new statistics received, the investments of the Chinese government in Australia by 62%, the lowest in seven years. The reduction in investments is linked to a growing political feud between both nations. The Australian university of Chinese data said it got just above $750 million in investment in 2020. Also, in 2020, just 18 Chinese investments were noticed.
This is down by 120 investment saw ij2015. Dr. Armstrong of the United Nations said that the reduction is larger if they measure it with their metrics. Over the years, Chinese firms have pumped funds into all sectors of the Australian economy, but in 2020, they only invested in real estate business $350 million, extraction $320 million, and construction $120 million.
It is visible that the decline is linked partly to Australia's policy on investment last year. The Australian government said last year some measures which will mandate all foreign investors to be under some scrutiny by the Australian investment bureau (FIRB). Before then, the law only applies to insensitive payments of $900 from nations without any trade deal with them.
Australia New laws on foreign investment another factor
This was done to reduce selling Australian assets to be international owners without adequate review. Australia has also said additional policies to its international investment laws in June which added additional security checks to foreign investments.
In September, Australian Treasurer Josh Frydenberg suspended the sale of a $650 billion sale of Australian plants to China. The ties between these two countries after the coronavirus were linked to China. Many western nations aren't comfortable with Chinese growing interest and have accused it of spreading the virus worldwide, an allegation Beijing denies. However, China has recovered quickly from the financial issues caused by a coronavirus.