As ties thaw, Australia welcomes Chinese investment

BEIJING (AP) — The Australian government’s rejection of a Chinese bid to take over an energy infrastructure company does not indicate a change in the country’s openness to doing business with China, Foreign Minister Marie Payne said yesterday.

Speaking after a meeting in Beijing with Chinese Foreign Minister Wang Yi that marked a thaw in recently chilly relations, Payne stressed “the importance of Australia’s welcoming of Chinese investment in Australia.”

On Wednesday, Australia said it intends to block a Chinese and Hong Kong consortium’s 13 billion Australian dollar ($9 billion) bid to take over the APA group.

Payne said the government judged that the acquisition would have resulted in “an undue concentration of foreign ownership by a single company group in what is our most significant gas transmission business.”

“We remain absolutely committed as a government to welcoming foreign investment into Australia. It supports jobs, it helps us to increase living standards,” she said.

Payne’s meeting with Wang was seen indicating an improvement in ties between the key economic partners after months of tension over accusations of Chinese interference in Australian politics, media and academia. That threatened to upset political ties as well as economic relations with China, which buys about one-third of Australia’s exports.

“I think the most important outcome of this dialogue is that we have reaffirmed the course of this relationship,” Wang said after the meeting, which ran an hour longer than scheduled.

While seeking to improve ties with its biggest trading partner, Australia is also taking steps to shore up its presence in the Asia-Pacific, where China has sought to extend its economic, political and military influence.

Australian Prime Minister Scott Morrison yesterday outlined plans to increase investments in infrastructure in the South Pacific and for greater military and diplomatic engagement with Australia’s island neighbors, who are increasing looking to China for aid through Beijing’s “Belt and Road” infrastructure program.