Swan tips China investment to triple this year
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Federal Treasurer Wayne Swan says Chinese investment in Australia could rise dramatically and perhaps triple this year, promising a non-discriminatory approach to incoming funds.
Mr Swan told a group of Chinese and Australian business executives in Beijing that Chinese companies had not invested large amounts of capital in Australia until recently.
"But I'm glad to say this seems to be changing," he said.
"Since we came to office, Chinese investment proposals have been approved at the rate of around one per fortnight."
At the end of 2006, China accounted for only 0.2 per cent of foreign investment in Australia, with a total of $3.4 billion invested.
Since then, however, the Federal Government has approved around $10 billion in proposed investments.
Mr Swan says that figure could hit a record $30 billion this year.
"I want to assure you that under the Rudd Government, Australia is, and will remain, open and welcoming towards foreign investment," he said.
He stressed the criteria used by Australia's Foreign Investment Review Board was non-discriminatory and aimed at ensuring market forces drive decisions, not external strategic or political considerations.
Mr Swan says both China and Australia have large sovereign wealth funds to invest for their country's future, and both should support global efforts to develop a set of voluntary principles to encourage cross border investment.
"Sovereign wealth funds present few direct threats to global financial system stability and can assist in macroeconomic stabilisation," he said.
- AFP
