New figures show that Chinese investment in Australia continues to decline as distrust develops between the two countries and mainland companies shift to emerging markets.
In 2016, China’s investment in Australia peaked at nearly $16 billion but has since nosedived.
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Chinese businesses are increasingly concentrating on emerging markets and Beijing is seeking to curb the influx of offshore funds, with China’s foreign direct investment falling by nearly 10 per cent globally in 2019.
Australia’s downturn was much sharper, partially because the mining boom — which brought strong investment flows from China — has now tailed off.
The biggest transaction recorded by CHIIA in 2019 was the Mengniu Dairy Company’s acquisition of infant formula maker Bellamy’s Australia for $1.5 billion.
Professor Drysdale said he expected future figures would show Chinese investment in Australia falling even further in 2020.
“In fact, the numbers we see coming in so far in the work we are doing suggest there has been a drop away again this year, so this trend is certainly continuing,” he said.