2016 was a year of new records for Chinese investment in Australia. Australia remains the second largest recipient country for accumulated Chinese Investment however, it is falling behind in growth.
Australia retains its position as the second largest recipient of Chinese ODI with data showing close to USD 90 billion of accumulated new investment since 2007. The United States ranks first with accumulated new investment surpassing USD 100 billion1.
This May 2017 report is the latest in a series of Demystifying Chinese Investment in Australia reports, by KPMG and The University of Sydney's China Studies Centre. It analyses Chinese outbound direct investment into Australia in 2016 and includes specialist contributions from Knight Frank, providing data and analysis on real estate transactions and Powell Tate Australia, provided analysis on gaining a social licence to operate.
There are signs of a growing maturity by Chinese investors in the Australian market. The number of joint ventures is increasing with more repeat investments by established Chinese companies. This has set a foundation for growth in future investment.
There are already well over 500 large Chinese companies invested in Australia which continue to show interest in high quality, large scale investments and projects.
Australia has a strategic opportunity to grow and diversify its already strong economic partnership with China through structural reform.
1 Thilo Hanemann and Cassie Gao, Record Deal Making in 2016 Pushes Cumulative Chinese FDI in the US above $100 billion, Rhodium Group, December 30 2016; (source includes investments valued under USD 5 million).