This Professor speaks my mind...
by, 18th-July-2009 at 11:14 AM (993 Views)
Hu row a small bump in China journey
THE detention of Stern Hu has brought into question a lot of assumptions regarding our trade relationship with China. Many see the arrest of Hu as retaliation for Rio's rejection of the Chinalco offer, as well as a reaction to Australian Government dealings more generally with Chinese investment in Australia. Some question whether the Australia-China relationship will be permanently damaged by this affair.
In my view this affair will turn out to be a small bump on the long road to China's full integration into the world economy through trade and investment. Part of that will be a continuing fruitful and prosperous trade and investment relationship with Australia.
China's continuing economic growth, as well as social and political development, is very important to us and to reverse course on our trade and investment relationship is simply not possible.
It is all very well to point to China's murkiness with regard to the arrest of Hu and to the murkiness surrounding the iron ore trade and China's state-owned enterprises. But our Foreign Investment Review Board processes would seem just as murky to outsiders. One thing that seems clear is that our foreign investment rules need to be more transparent... more.