Chinese companies’ investment in Australia fell by almost 70 percent last year to its lowest level since 2007, a report released today showed.
Chinese companies disbursed $ 778 million in Australia during 2021, compared to $ 2.5 billion in 2020, the study by KPMG and the University of Sydney showed.
The number of agreements last year almost halved to 11, from 20 in 2020.
Four mineral-related business deals accounted for the majority of Chinese investment in Australia last year.
Trade disputes between Canberra and Beijing, restrictions on money leaving China and stricter laws on foreign capital in Australia have forced Chinese investors to look at other destinations.
Meanwhile, Wine Australia, the federal government-backed wine marketing and research agency, said it would close its physical office in Shanghai as punitive tariffs on its products have reduced trade opportunities in China.
Wine Australia said it made the decision after consulting with Australian grape growers and winemakers, the Bloomberg News agency reports.
The Australian wine industry has become a major victim in the trade conflict between the two nations.
China – traditionally the largest market for Australian winemakers – hit a 220 percent tariff on exports by 2020.
Prime Minister Anthony Albanese told China last month that it must lift trade bans on Australian goods if it wants to improve relations between the two countries.
He said trade sanctions against exports, such as barley, wine, coal and seafood, were unjustified.
“It is China that has imposed sanctions on Australia. There is no reason to do so. And that is why they should be removed.”