Chinese investment plunges to $1b in 2020
Andrew TillettPolitical correspondent
Chinese investment in Australia plummeted to a record low of $1 billion in 2020 according to one estimate, reflecting heightened tensions between Canberra and Beijing as well as the economic shockwave from the coronavirus.
In a sign that Australia is losing an important source of funding, Australian National University’s Chinese Investment in Australia database shows that total investment fell by 61 per cent last year, down from $2.6 billion, compounding a 47 per cent drop in 2019.
“Without an active source of capital from China, we’re losing a big source of capital and it will devalue assets because we are losing a significant bidder,” ANU’s East Asian Bureau of Economic Research director, Shiro Armstrong, said.
Just 20 Chinese investments were recorded in 2020, down from 111 when the flow of capital peaked at $16 billion in 2016.
“$1 billion for Chinese investment in Australia is significantly low,” Dr Armstrong said.