A framework for Chinese investment
I hope to hear more of this.
Simon Crean's suggestion that Australia and China should create a bilateral 'investment framework' is on the mark.
"Trade Minister Simon Crean says Australia and China need a more structured approach to investment to head off 'xenophobic reactions' to major deals such as the $27 billion bid by Chinalco to increase its stake in Rio Tinto". Extract from Simon Crean in The Australian
My preferred solution to xenophobia on investment is to get rid of FIRB border-based reviews of (barriers to) investment and rely, chiefly, on our strong business regulatory institutions.
But I know that seems unduly radical to most governments. As a fall-back—and of course as an incentive to complete the long-delayed free-trade agreement with China—Simon Crean's reminder that we have created advantageous bilateral investment frameworks in other FTAs (e.g. with the USA) is the right idea.
Posted on 04/21 at 09:58 AM.
Your comments
David Baber
Peter,
Why do you e.g the USA FTA as particularly advantageous?
Hi David,
We agreed to give the USA higher thresholds for investment approval. Click the link through to the DFAT site for the details.
I’m saying we could easily offer the Chinese the same (or at the right ‘price’ a better) deal.