A study has found Chinese direct investment into Australia dropped 10% last year to $9.11 billion, with the United States overtaking the country as the favourite destination.
The KPMG/Sydney University study, reported by the AFR ahead of its release on Friday, says Australia is feeling the effects of a mining slowdown, poor performance of recent Chinese mining investment and flow-on uncertainty from an election year.
KPMG’s Asia business group head Doug Ferguson said Australia would still be an attractive destination for Chinese direct investment. But it needs to take action on immigration approval, as well as operating costs and project approval.
According to the report, after the US and Australia the top destinations were Guinea, Kazakhstan and Russia.
Thing looks a bit different on a seven-year cumulative basis though:
- $US59.9 billion invested in the United States
- $US57.2 billion invested in Australia
- $US37.6 billion invested in Canada
- $US29.2 billion Brazil
- $US18.5 billion invested in Britain
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