Summary Box: Australian opposition leader ‘careful’ on Chinese investment but won’t change law
By APTuesday, August 17, 2010
Summary Box: Australia mulls China investments
FINE LINE: Australia opposition leader Tony Abbott says he would be “very careful” about China buying controlling stakes in Australian companies but will not change foreign investment laws if he wins elections this week.
THE BACKDROP: Abbott, leader of the conservative Liberal Party, is in a tight race against Prime Minister Julia Gillard’s center-left Labor Party in national polls set for Saturday. The opposition has raised concerns that the recent surge in Chinese investment in Australia’s mining industry will lower prices paid by China for Australian raw materials such as iron ore and coal.
THE RULES: Investments backed by foreign government money have to be assessed by Australia’s Foreign Investment Review Board which determines whether they are in Australian interests. The government has the final say.
