Rudd may give China investment rights
Sydney Morning Herald
Rudd may give China investment rights
21 April 2008
The Rudd government is considering giving cashed-up Chinese companies the same investment rights enjoyed by the US in a bid to revitalise free-trade talks.
Trade Minister Simon Crean says China has requested to be allowed to invest up to $1 billion at a time without having to seek approval from the Foreign Investment Review Board (FIRB).
US companies have had that right in Australia since a free-trade agreement was signed between the countries in 2005.
Mr Crean said in return Australia negotiators would be expecting China to free up its own foreign investment restrictions.
"If we have considered it in other FTAs, it’s pretty hard to say that we won’t consider it," Mr Crean told The Australian Financial Review.
"This is a two-way thing. We also have interests in freeing up restrictions on Australian investments into China."
Currently the FIRB has the right to reject any proposed investment worth more than $100 million.
The proposed changes could raise eyebrows in Australia because of the recent increase in Chinese equity investments and takeovers, especially in the resources sector, at a time when Beijing has accumulated $US1.7 trillion ($1.8 trillion) in foreign exchange reserves, the Review reports.
