Chinese investment into Australia collapses

Awesome, at Domain:

Chinese investment in Australia has fallen to its lowest level in a decade as political tension rises between the two major trading partners, but Labor says superannuation funds could take the place of foreign investors.

There was a 58.4 per cent drop in Chinese investment in local businesses last year, bringing the total spend down to US$2.4 billion ($3.4 billion). This is the lowest level of investment since 2007, a new report released by KPMG and the University of Sydney on Tuesday shows, and about $1.5 billion of this total investment was through the sale of Tasmanian infant formula producer Bellamy’s Australia to Inner Mongolia’s China Mengniu Dairy Company.

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About the author

David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.