1 / 5

Chinese Investment in Australian Primary Industries

Chinese Investment in Australian Primary Industries. Peter Drysdale Crawford School of Economics and Government , ANU ABARES Outlook Conference, Canberra, 1 March 2011. Context. commodities boom and shift in terms of trade

warren
Download Presentation

Chinese Investment in Australian Primary Industries

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Chinese Investment in Australian Primary Industries Peter Drysdale Crawford School of Economics and Government , ANU ABARES Outlook Conference, Canberra, 1 March 2011

  2. Context • commodities boom and shift in terms of trade • rise of China and India: industrialization, trade, rapid growth in resource dependence • scale of resource demand and investment: impact on economy and other sectors (like farming) • growth of Chinese ODI: direct, indirect investment, other sectors: Japanese precedent • policy response: state and customer ownership

  3. FIRB approved Chinese investment (A$m)

  4. Role of FDI in the primary sector • integration and FDI in resource sector • importance of FDI to industry strength • China’s early, large investments in Australia • drivers of Chinese FDI: competitiveness and security (eg. Chinalco; Sinosteel; Minmetals) • drivers in China: security, diversification • targets: agri-business; livestock; dairy; sugar • farm sector gains from capital, market links • early days: institutions, learning, sophistication • real estate, land issues

  5. Issues • FDI by buyers of exports: transfer pricing? • SOEs (resources) or ‘dragon head companies’ (agriculture): evolution of Chinese enterprise • modest overall Chinese stake; growing rapidly • US, UK, Japanese precedents and response • China largest new global source of FDI • Australia’s robust market institutions: FIRB • two-way engagement by Australia and other partners; evolving institutions in China • getting national policy strategies right

More Related