Like what you've read?

On Line Opinion is the only Australian site where you get all sides of the story. We don't
charge, but we need your support. Here�s how you can help.

  • Advertise

    We have a monthly audience of 70,000 and advertising packages from $200 a month.

  • Volunteer

    We always need commissioning editors and sub-editors.

  • Contribute

    Got something to say? Submit an essay.


 The National Forum   Donate   Your Account   On Line Opinion   Forum   Blogs   Polling   About   
On Line Opinion logo ON LINE OPINION - Australia's e-journal of social and political debate

Subscribe!
Subscribe





On Line Opinion is a not-for-profit publication and relies on the generosity of its sponsors, editors and contributors. If you would like to help, contact us.
___________

Syndicate
RSS/XML


RSS 2.0

Playing the China card may win votes, but it’s bad for Australia

By James Laurenceson - posted Monday, 30 March 2015



A still from a NSW election ad, run on television and online, which says "selling the electricity network is wrong; selling it to another country is just not on". CFMEU Mining/YouTube

In the final days of the New South Wales election campaign, Labor and the unions have decided to play the China card. Kudos to Fairfax journalist Joe Aston: he predicted this more than a month ago, noting that with two potential Chinese bidders for NSW power assets, there were "two juicy avenues for a foreign investment scare campaign".

The issue of whether foreign investors – and particularly state-owned Chinese interests – should be allowed to bid for privatised power assets has been bubbling along throughout this election campaign.

Advertisement

But things have become more heated in these last few days. Unfortunately, it has happened against a recent backdrop of state and federal politicians from both major parties pandering to populist prejudices against Chinese investors, on everything from high-end real estate to "buying up" our farms.

Doing that ignores the facts, including that according to our very own Australian Bureau of Statistics, Australia has invested nearly as much in China as China has invested in Australia. (You can download the ABS tables here: Table 2 shows the level of Chinese investment in Australia, which was A$31.9 billion at the end of 2013, while Table 5 shows Australian investment in China had reached A$29.6 billion in the same period.)

And for all the headlines that it attracts, the Chinese share of the total stock of foreign investment in Australia was a minuscule 1.3% at the end of 2013, far behind other countries including the United States, United Kingdom, Japan and Singapore.

The five top countries investing in Australia, and their percentage share of the total level of foreign investment here, for the year ended 31 December 2013. Australian Bureau of Statistics 5352.0 - International Investment Position, Australia: Supplementary Statistics, 2013, CC BY Click to enlarge

"Don't go China's way"

On Thursday, the second last full day of the NSW campaign, Premier Mike Baird was urged by voters across Sydney – first a market vegetable seller, then a woman at the Royal Easter Show – not "to go China's way".

Advertisement

Those voters were responding to Baird's plan to privatise state-owned power networks, which may attract interest from foreign bidders, including – but not only – from mainland China and Hong Kong.

In response, Labor and a union representing mining and energy workers have been ramping up their warnings against the risks of foreign ownership, such as this ad from NSW Labor, featuring a front page story about Hong Kong billionaire Li Ka-shing.

  1. Pages:
  2. Page 1
  3. 2
  4. 3
  5. All

This article was first published on The Conversation.



Discuss in our Forums

See what other readers are saying about this article!

Click here to read & post comments.

4 posts so far.

Share this:
reddit this reddit thisbookmark with del.icio.us Del.icio.usdigg thisseed newsvineSeed NewsvineStumbleUpon StumbleUponsubmit to propellerkwoff it

About the Author

James Laurenceson is Deputy Director and Professor, Australia-China Relations Institute (ACRI) at University of Technology, Sydney.

Creative Commons LicenseThis work is licensed under a Creative Commons License.

Article Tools
Comment 4 comments
Print Printable version
Subscribe Subscribe
Email Email a friend
Advertisement

About Us Search Discuss Feedback Legals Privacy