China's investment in Western Australia's water infrastructure is expected to come under close scrutiny later this year, when the federal government will finally announce its foreign water ownership registry.
An international political expert at the University of Western Australia stressed that China could be interested in Australia's water facilities against a backdrop of climate change and social concerns about its own water security.
According to a 2015 report, the Australian Defense Forces are also focusing on water shortages in China. Drought, pollution and population growth will lead to water shortages in 2030, creating the potential for instability in the Indian Ocean and Pacific Ocean.
Tensions have emerged between China and other countries, including India and Thailand, as there are more than 90,000 dams downstream of major rivers, such as the Mekong and Sutlej rivers, the report said.
One of China's most notable investments in Australia's water infrastructure was the acquisition of Australia's Trility. by (FIRB), a foreign investment review committee, approved in March this year by Northwater.
Trility involves more than 30 water infrastructure projects across the country. That includes Helena Water's 25 percent stake in, Helena Water, a $300 million water treatment plant that provides water to more than 100000 people in the state's Goldfields region.
Last year, the federal government set up a registry of water rights aimed at improving transparency and safety of key water assets in Australia.
Since July 2017, the Australian Revenue Authority has been collecting information on water assets owned by foreign investors, similar to the system for registering agricultural land owned by foreign investors, and will release its first report later this year.
Beeson (Mark Beeson), a professor of international politics at the University of Western Australia, said it was reasonable for them to be interested in Australia's water assets given China's long-term policy timetable and domestic water supply.
Professor Beeson, however, does not think China will soon import billions of liters of water from Australian aquifers and dams.
Water Director Kelly (Dave Kelly) said the state's government did not see any security concerns in the acquisition of Trility Australia by Northwater.
A Treasury spokesman declined to give details of the foreign investment review committee's approval of the investment.
Foreign investment in water and agricultural assets broke out on the federal government agenda in 2015, after a Chinese company bought a 1999 lease in Port Darwin for five hundred and five million nine hundred and ninety nine thousand nine hundred and ninety nine yuan.
Since then, government has lowered the threshold for FIRB to review foreign investment, created agricultural registries and, in 2017, established critical infrastructure centres to advise on security risks to critical infrastructure.
Mr. Beeson said that until four years ago, the FIRB approval process was only a symbolic gesture, reviewing investments from countries such as the United Kingdom and the United States.
He said that China's investment under review far outstrips other countries, which has also led to tensions between the two countries, but that makes sense given the close ties between Chinese companies and the government.
Some countries, especially China, are under closer scrutiny. I think this is quite self-evident, so it is understandable that they may feel a little aggrieved about it. " He said。
"nevertheless, China's overall foreign policy and its strategic investment policy are very different from those of other countries, especially because they often occur with the support of state-owned enterprises, which are linked to the government. And often part of China's broader vision of world status. "