Mr. Fletenberg said the strengthening of foreign investment approvals was not aimed at a country
Attempts by foreign investors to acquire Australian assets will face tougher scrutiny, designed to protect local companies from being "hunted" by asset devaluations during the.
Recent efforts by politicians, conservative politicians, radio acclaim jones (AlanJones), columnist bolt (Andrew Bolt), former chief of staff of former prime minister albert (Tony Abbott), and current air news (Sky News) television hostess codeline (Peta Credlin), to prevent chinese investors from buying their assets at low prices while australian companies depreciate during the epidemic have prompted many to believe sunday`s new measures to limit foreign acquisitions were aimed specifically at china.
But Federal Treasury Secretary Fredenberg (Josh Frydenberg) today denied that.
The treasury secretary had the right to block more than $1.2 billion in foreign acquisitions under the original rules, while the new interim rules would allow the treasury secretary to reject any foreign-funded projects, subject to the size of the amount.
Because of the recent crash in australia`s stock market, the market value fell at its worst by more than 30% from its peak on february 20, prompting some in the country to worry that their assets would be bought down by foreign investors. And some conservative politicians and against China politicians are targeting china.
But in a radio interview monday, mr. fleidenberg denied that the new rules were specifically aimed at chinese state companies, noting that u.s. investment in australia far outstripped that of china.
He told three AW radio stations this morning :" We want to stop any hunting that is not in our national interest. "
Chinese companies invested 13 billion yuan in Australia last year, while American companies invested 58 billion yuan in Australia.
Investment in australia has fallen sharply in recent years as australia government repeatedly vetoed applications from chinese companies to invest in major projects in australia and chinese government controlled capital outflows. Although China accounted for nearly half of the projects applied to the Foreign Investment Audit Committee (FIRB) under the Australian Treasury Department in 2018-19, the amount was only 5.7%, or 13 billion yuan, while the United States accounted for only 25% of the projects applied, but the amount was as high as 58.2 billion yuan. Canada ranked second, amounting to 26 billion yuan, followed by Singapore and Japan. In terms of amount, China ranks fifth only.
But some liberal backers councillor expressed concern that australian companies were exposed to foreign "hunting" after the stock market slump.
Any decision on whether to block foreign acquisitions would take into account national security, competition issues, tax concerns, and investor behaviour, he said.
He also told ABC Radio :" This is a preventive interim measure aimed at increasing our visibility and scrutiny of all foreign investment projects to ensure that they are in the national interest. "
Foreign investment is good for australia, he says, and one in ten local companies benefit.
"We hope that foreign investment will continue in Australia, not only during the new crown virus crisis, but also in the years after the outbreak. "
He stressed that the new policy did not mean "freezing" foreign investment but "protecting national interests ".
According to the original regulations, any foreign investment projects below $1.2 billion will not be subject to approval by the Foreign Investment Audit Committee of the Australian government.
But under the new rules introduced yesterday, any foreign and corporate bid for any australian company will be approved by the commission and the approval period will be extended from 30 days to six months.
The new rules will be maintained during the new coronavirus outbreak.
Jim Chalmers, shadow finance minister, said labour would support the measure in principle.
He told AUSA AAP: " this sounds like a wise move in uncertain times. "
