| two-way investment |
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| 2004-12-08 11:57 |
Australia is among China's major sources of foreign direct investment. Contracted Australian investment in China has expanded steadily in recent years. According to the Statistics Bureau of Australia, the Australian business community had invested A$8 billion in China by the end of 2000. The areas that the investment has gone into are many and varied. They include mining, construction, transportation and food processing. For example, Australian mining giants such BHP Billiton and Rio Tinto have a strong presence in China. Australian investment in other areas such as IT, insurance, legal and banking services is also substantial.
On the other hand, Australia has also become a major destination for China's outward investment. According to the Statistics of Bureau of Australia, Chinese investment in Australia exceeds A$6 billion, contributing in no mean measure to Australian exports and jobs.
By far, the resource and mining sector has received the lion's share of the investment from China. Major projects in this sector include Mount Channar iron-ore (A$120 million) and Portland Aluminum Smelter (A$ 100million). The single largest Chinese investment in Australia, amounting to US $240 million, is in the mining sector.
Agriculture is another area of concentration of the Chinese investment. Over the years, Chinese companies have made substantial investment in dairy, cattle and cotton farming in Australia.
However, it is the service sector that has attracted the largest number of companies from China. Quite a number of Chinese companies are engaged in import and export business, and air and ocean transportation as well as financial services, playing an important role in increasing the flow of goods and services between China and Australia.
With China's fast-growing economy, which averages more than 9 per cent in the past twenty years, and its accession to the World Trade Organization, the country's huge market potential is being increasingly materialized. The bilateral economic relations and trade between China and Australia are set to further expand for the benefit of the two nations.
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