Australia remains a major recipient of Chinese direct investment with accumulated Chinese ODI of USD 99 billion over the last decade since 2008.
Renewed investment in mining, continued investment in commercial real estate1 and a surge in healthcare investment helped drive overall Chinese investment in Australia to USD 10.3 billion (AUD 13.3 billion) in 2017 – although down 11 percent (in USD terms) from 2016. Changing regulatory, political and economic landscapes impacted new investment flows from China to the world during the year, with global Chinese overseas direct investment falling by 29 percent.
Australia has done relatively well by concentrating on its specific competitive advantages. The nature of Chinese investment in Australia continues to change and diversify, creating new opportunities. Sectors that complement the strengthening of the Chinese economy such a mining, property, healthcare, renewable energy, food and agribusiness have been very active in 2017.
This June 2018 report is the latest in a series of Demystifying Chinese Investment in Australia reports, by KPMG and The University of Sydney Business School. It analyses Chinese outbound direct investment into Australia in the 2017 calendar year and includes a specialist contribution from JLL providing data and analysis on real estate transactions in the 2017 calendar year. The report also incorporates the latest Chinese Investors in Australia Survey.
Australia’s relationship with China, while experiencing a period of heightened tension, is mature and deeply established in trade and investment and increasingly in society and culture through education, tourism and migration.
It is important that the Australian Government and business community collaborate to encourage further investment in the right areas. Australia stands to make sustained economic, social and diplomatic gains by nurturing long-term partnerships between Australian companies and Chinese investors.
1. Note 'real estate’ referred to in this report does NOT include residential apartment and homes sales.
©2021 KPMG, an Australian partnership and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organisation.
Liability limited by a scheme approved under Professional Standards Legislation.
For more detail about the structure of the KPMG global organisation please visit https://home.kpmg/governance.