Back to China and Australia
Australia has blocked an A$300m takeover offer by China State Construction Engineering Company for Probuild, a local building contractor following the introduction of tough new foreign investment rules (FIRB) on 1 January 2021 which give Canberra greater powers to review proposed investments on national security grounds.
Prof Hendrischke at University of Sydney Business School says Canberra’s decision follows Washington’s decision to list links to “Communist China military companies”.
China investment in Australia has fallen due to ban on Huawei involvement in 5G and calls for an inquiry into the Covid-19 outbreak in Wuhan.
Australia’s hard line mirrors the harder Trump/Pompeo policy but contrasts with EU’s more modest approach and the recent EU-China investment treaty.
Australian business is worried by its government’s actions and fears further sanctions. Diplomats and Business with quite different agendas.