Already a subscriber?Changes to limit Chinese investment in Australia could undermine Labor’s green energy goals as the country struggles to maintain even half the pace of spending required to meet the 2030 target of 82 per cent of energy production from renewable sources, experts said.
Veteran miner and Minerals Council boss Andrew Michelmore said he did not expect problems for Chinese investment. “It’s the people who try to play the system and manipulate it who face trouble,” he said, adding the proposed changes struck a nuanced tone.understands that between 70 and 80 per cent of overseas investors will receive accelerated assessments under the new rules, which will limit the national security burden on noncontroversial investments.
“We can recognise that we can be the beneficiaries of cheaper technology produced in other parts of the world. At the same time, we recognise we have a role to play in making those supply chains more robust.”The treasurer also rejected suggestions the new rules were aimed at curtailing Chinese investment. He said closer scrutiny would also be applied to investments that raised competition concerns and those that are structured through no or low-tax jurisdictions.
“The US can take a much stronger position,” he said. “Australia has to be more balanced. China’s our biggest trading partner, and you don’t want to cause unnecessary friction. On the issue of Chinese investment being under strict scrutiny since the Port of Darwin decision, he said it was a balancing act and needed to be carefully handled so that it didn’t “infect” the whole market.