The real deal

Apparently a can of Foster’s and a visit to Outback Steakhouse at the Worker’s Stadium won’t slake China’s thirst for all things Oz. They want the real deal, not just some American knock-off. And so we begin the next chapter in our continuing saga in which China attempts to buy everything of value in Australia. Fortescue Metals Group (FMG), the ink still fresh on its US$922 million stake purchase by Hunan Valin Iron & Steel, may have another Chinese investor waiting in the wings, in the form of sovereign wealth fund China Investment Corp. China Economic Review is a bit hurt that FMG didn’t admit as much to us when we chased after the firm’s executive director in our best impersonation of a wire reporter. Really, really hurt. Indeed it’s a new era for Chinese firms seeking resources and deals overseas. ChemChina has participated in the first round of bidding for assets belonging to Dow Chemical, business lines that could fetch between US$9 billion and US$11.5 billion. We could also see future deals in Europe, given that the EU and China have agreed to further cooperate on trade and investment despite some recent unpleasantness.