Australia

Chinese investment in Australia fell by 60 per cent in 2020 as trade war rages

China’s fierce battle with Australia cost us billions of dollars, and investment plummeted to a record low in 2020.

From 2018, when Sino-US relations fell to a new lowest level, after Australia became the first country to lock out Chinese smartphone giant Huawei from 5G networks, due to top secret national security concerns The conflict between the two countries has been intensifying over the years.

Since then, relations have deteriorated terribly – and now China seems to have taken the ultimate revenge.

According to new data from China’s investment in Australian database (CHIIA) At the Australian National University, China’s investment in Australia fell by more than 61% last year.

CHIIA has found that it will benefit from only $ 1 billion in Chinese investment in 2020, compared to $ 2.6 billion in 2019.

This is a surprising drop from the $ 16.5 billion peak welcomed in 2016.

The numbers show that China’s total investment was only 20 compared to 111 in 2016.

This represents the lowest number recorded in the last 6 years.

According to the United Nations, Dr. Shiroarmstrong, director of the East Asian Economic Research Bureau, based in CHIIA, said foreign direct investment fell by 42 percent globally during the 2020 coronavirus pandemic. ..

“Although the UN data are measured differently, China’s investment in Australia has declined much more,” said Dr. Armstrong.

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“This not only reflects the impact of COVID, but also foreign investment by the Australian Government, especially China.

“The United Nations saw a 46% decrease in total foreign investment in Australia, while foreign investment in Japan, China, India and some developed countries such as Sweden and Spain increased, with the United States and the United Kingdom. Investment has plummeted. “

For the past few years, China’s investment has been present in almost every sector of the regional economy, but by 2020 it was limited to real estate, mining and manufacturing.

The beginning of the feud

on the other hand China’s feud with Australia ignited in 2018, Coronavirus pandemic increased in early 2020.

In April last year, Prime Minister Scott Morrison called for an independent investigation into the origin of the virus, and China responded to anger and warned of a boycott of Australian commodities.

Since then, China has dealt with a series of trade blows, with everything from barley to wood, wine and spiny lobster sanctioned.

In 2020, Australian journalists also evacuated China, “spy” charges were leveled against Australia, and in July Australia rejected China’s claim to “historical rights” to parts of the South China Sea. The situation got worse.

The following month, Deputy Chief of Missions of China, Xining Wang, gave a wonderful speech at the National Press Club in Canberra outlining how Australia mistreated the country.

And in November, a bomb document leaking 14 reasons why China felt “angry” with Australia claimed to be “damaging bilateral relations.”

China’s latest attack

Australia has been in a series of months from China, beginning in December, after sharing on Twitter an image of a doctor showing that Zhao Lijian, a spokesman for the Chinese Ministry of Foreign Affairs, has a knife in the throat of a young child. I am under a malicious attack. ..

Since then, China has doubled its attacks, with Chinese state media sharing a series of fresh cartoons and damaging editorials criticizing Australia.

In the latest example Chinese government mouthpiece Global Times I took a new swipe, Australia accuses it of trying to “suppress China” by bidding on the United States.

The deletion was made in response to an article by the Australian Institute for Strategic Policy, which the Chinese Communist Party declared four serious flaws in its strategic thinking about China’s future.

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However, an opinion piece released over the weekend accused Australia, Canada and the United Kingdom (all of the Five Eyes Intelligence Network countries) of “trying to contain emerging markets” such as China.

“Simply put, the Five Eyes are undermining the development rights of 1.4 billion Chinese,” the opinion piece said.

“The five countries share a great advantage over the Anglo-Saxon civilization and are trying to comprehensively suppress China and other countries with different ideologies.”

And last week, the report revealed that Chinese institutions have been encouraged by local governments not to recommend Australia as an international learning option for students., according to Sydney Morning Herald.

This is a serious blow to Australia’s international education sector, bringing $ 37.5 billion to the Australian economy between 2019 and 2020, a figure of $ 10.5 billion in China alone.

Place of originChinese investment in Australia fell by 60 per cent in 2020 as trade war rages

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