By Tess Ingram
Australian Financial Review
A new model is needed to deal with the friction in the business relationship between Chinese investors and Australian resources projects, industry experts say. Failed investment ventures, project specific problems and a failure to appropriately communicate Australia’s desire for Chinese investment have made investors from the Asian powerhouse more wary of investing in Australian resources.
Australia China Business Council president Ian McCubbin says traditionally, Chinese investors have sought to establish greenfields projects, either on their own or in joint ventures with Australian companies. “That model for various reasons has struggled,” Mr McCubbin said.
“Issues arise largely out of project specific concerns, be they environmental or labour-related issues or other contributors to project delays. From that aspect, I think Chinese companies have formed the point of view that investing in a greenfields project, even in joint venture with an Australian Securities Exchange-listed company, can be quite difficult.”