Chinese investment in Australia fell to its lowest level in a decade last year following the implementation of tougher rules on foreign investment and a sharp deterioration in diplomatic relations between the nations, reported the Financial Times.
Chinese companies invested A$3.4 billion ($2.4 billion) in 2019, down 58% from A$8.2 billion a year earlier, with just 42 deals completed during the 12 months to the end of December, according to a joint report by KPMG and the University of Sydney.
A single deal, Mengniu Dairy Company’s purchase of Bellamy’s for A$1.5 billion, accounted for almost half of total investment in 2019.
“Australia’s decline mirrors that of a number of western countries, including the US, Canada and members of the EU, which are implementing tighter foreign investment screening measures, and strategic risk perceptions of Chinese investors of overseas markets,” said Hans Hendrischke, professor at the University of Sydney Business School and co-author of the report.