Bananas Joyce wants end to Chinese investment in Australia

[donkeykong]

From http://www.theaustralian.com.au/new...t-barnaby-joyce/story-e6frg6xf-1225809228582

NEW opposition finance spokesman Barnaby Joyce has called for an outright ban on investment by Chinese state-owned companies in the Australian resources sector.

Senator Joyce's warning about doing business with government-owned entities yesterday came as Wayne Swan said Australia's foreign investment regime could be better explained, ordering the Foreign Investment Review Board to work closely with Australia's embassies abroad to explain foreign investment policies. Guides to Australia's investment rules written in Chinese, Japanese and Bahasa are being prepared.

Senator Joyce said that, although he welcomed foreign investment by private companies, investment in sovereign resources by government-owned businesses turned corporate disputes into diplomatic disputes.

"The difference between a corporation and a government is governments have armies, seats at the United Nations and can say the word `no' and you can't do much about it when they do," he said. "This is a confusion I don't want my nation to get into."

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He was responding to an attack by the Treasurer, who said Senator Joyce's views on foreign investment came from the "reactionary fringe".

In an address to the business group Global Foundation yesterday, Mr Swan said Chinese foreign investment was controversial, as were previous waves of investment from Japan, the US and Britain. "Each successive wave of foreign investment reinforced a pattern we see today with China, where successes in trade led to successes in investment," he said.

Mr Swan said China had ranked only 10th among applications for investment projects above $500 million over the last two years, far behind Britain and the US. Mr Swan quoted Treasury analysis showing that, without foreign investment over the past few years, business investment would be 25 per cent lower, the GDP would be 3 per cent smaller, and there would be 200,000 fewer jobs. Mr Swan said a review of foreign investment had to be conducted on a case-by-case basis and there were three consistent themes in government consideration:

lThat close scrutiny be given to investments in resource companies by their customers, particularly where there is potential control over pricing and production;

lThat foreign investment in a resource company should not interfere with Australia's ability to be a reliable supplier to all potential trading partners; and

lThat foreign buyers of companies listed on the stock exchange should retain the listing in the interests of transparency.

Mr Swan agreed with a Senate report that Australia's foreign investment guidelines could be explained better and has asked the Foreign Investment Review Board to work more closely with Australia's embassies.

Senator Joyce said he was amazed at the acceptance of Chinese investment, after China's arrest of Rio Tinto's iron ore negotiating team led by Stern Hu

What a peanut, sounds like something the Socialist Alliance would come up with. Heaven forbid Abbot and Co actually get in at the next election and chase all those “slanty eyed devils” from our board rooms.

 

[prawn_86]

Re: Bananas Joyce wants end to Chinese investment in Australia.

I have mixed feelings on this. I think that there should be a % limit applied to each investment, with a review if they want to go over that %.

The only reason it bothers me is that it is extremely hard for Aus co's to takeover Chinese co's. Essentially what the Chinese are doing is slowly taking over the World subtly, without the need for war. Good on them i say as they have a long term plan, but it is still slightly worrying, moreso because our pollies are so short sighted.

 

[Aussiejeff]

Re: Bananas Joyce wants end to Chinese investment in Australia.

I have mixed feelings on this. I think that there should be a % limit applied to each investment, with a review if they want to go over that %.

The only reason it bothers me is that it is extremely hard for Aus co's to takeover Chinese co's. Essentially what the Chinese are doing is slowly taking over the World subtly, without the need for war. Good on them i say as they have a long term plan, but it is still slightly worrying, moreso because our pollies are so short sighted.

Yes, their "long term plan" is Total World Domination. So that's ok? I guess so, since they have no real opposition - they hold all the aces in the pack? Sure, a reasonable amount of investment anywhere is totally ok. But throwing hands in the air and allowing wholesale sellout by us all to China? For what? A probable SHORT TERM GAIN in employment and GDP? What about the long term plan?

My main concern is that The Rest Of The World (including us) is blindly putting their collective futures totally in the hands of a communist Totalitarian Regime. If you had raised this scenario a mere 10 years ago, most likely you would have been branded a loony!! Q:- WHAT IF CHINA FAILS (natural catastrophe or regime / economic collapse etc)???

Oh, but of course, the Chinese Communist Party has NO corruption and is run by experts who know better than any *Western* society how to steer the New World Economy eh?

Indeed.

Good luck OZ / World, then, is about all I can offer. I don't want to look further into the crystal ball than that because I have an unwelcome sense of foreboding. Must be the eternal pessimist in me?

 

[donkeykong]

Re: Bananas Joyce wants end to Chinese investment in Australia.

We have strong trade practice and industrial relations laws in Australia so it shouldn’t matter who runs a company, they still have to abide by the laws set out by our government.

I guess the main reason I think this is ridiculous is that the libs/nat are supposed to be the party that are pro business, pro private enterprise, low taxes and have historical done a better job at managing the economy than labor yet the current mob just seem to come out with ill thought out sound bytes that if implemented would be disastrous for our country. I’m surprised they haven’t suggested we print more money to help the economy.

Also please note that I am not rudd groupie (i’ve never voted Labor).

PS, I think its pretty safe to say that in 2009 china is about as far away from socialist/communist ideals as a country can get.

 

[Aussiejeff]

Re: Bananas Joyce wants end to Chinese investment in Australia.

We have strong trade practice and industrial relations laws in Australia so it shouldn’t matter who runs a company, they still have to abide by the laws set out by our government.

I guess the main reason I think this is ridiculous is that the libs/nat are supposed to be the party that are pro business, pro private enterprise, low taxes and have historical done a better job at managing the economy than labor yet the current mob just seem to come out with ill thought out sound bytes that if implemented would be disastrous for our country. I’m surprised they haven’t suggested we print more money to help the economy.

Also please note that I am not rudd groupie (i’ve never voted Labor).

PS, I think its pretty safe to say that in 2009 china is about as far away from socialist/communist ideals as a country can get.

Try telling that to millions of their own repressed people - Uigher & Tibetans come to mind.

Only as recently as last February the US was trying to hammer them on Human Rights abuses, but were backing off because the Global financial Crisis was deemed more important an issue! http://www.cbsnews.com/stories/2009/02/25/politics/100days/worldaffairs/main4828748.shtml

Suddenly, because they have got oodles of cash to splash, these BAD guys have magically transformed into GOOD guys? Not-so-squeaky-clean IMO.

 

[bellenuit]

Re: Bananas Joyce wants end to Chinese investment in Australia.

We have strong trade practice and industrial relations laws in Australia so it shouldn’t matter who runs a company, they still have to abide by the laws set out by our government.

I guess the main reason I think this is ridiculous is that the libs/nat are supposed to be the party that are pro business, pro private enterprise, low taxes and have historical done a better job at managing the economy than labor yet the current mob just seem to come out with ill thought out sound bytes that if implemented would be disastrous for our country. I’m surprised they haven’t suggested we print more money to help the economy.

Also please note that I am not rudd groupie (i’ve never voted Labor).

PS, I think its pretty safe to say that in 2009 china is about as far away from socialist/communist ideals as a country can get.

Barnaby Joyce may be shooting from the hip in some of his recent statements, but there is some merit in what he says.

We have already seen that the laws of our country can't protect our citizens when travelling in China (Stern Hu). How are our business leaders to conduct business in China, if they can be imprisoned at the whim of the communist party on trumped up charges? What about the pressure this places on the staff of these companies that may be resident in China? How can they conduct business analysis when the information collected may be deemed to be state secrets even if available from legitimate sources? We could of course refuse to do business in China and insist they send their representatives here. But that just backs up Joyce's point. We are then seen as discriminatory and we then have a diplomatic dispute.

It is pro-business and pro-private enterprise to try and curtail a foreign state run enterprise taking control of the complete supply and demand relationship of our resource industry. What happens if, hypothetically, they owned a major iron ore producer, like RIO, and negotiated a price to supply Chinese steel mills (owned by the same government) with iron ore at a price considerably less than the going rate. Do we intervene and have another diplomatic dispute on our hands? Do we do nothing and have our resources robbed from underneath our eyes? Since they own both sides in the supply and demand relationship, it doesn't matter to them whether they make huge losses in the supply end, as they will recuperate them at the demand end. We are the ones that lose and our industries who need to compete don't stand a chance.

 

[Soft Dough]

Re: Bananas Joyce wants end to Chinese investment in Australia.

And the alternative is Rudd?

Sure let us have the chinese come in and buy our resources when there is uncertainty just to the profit handsomely when the dip ends.

AND

buy our houses and charge us ridiculous rents for the pleasure of working for them at said mines.


Total lunacy from a PM who has no idea how to run a country. The sad part is that 60% of Australians are so stupid they voted the fool in.

Says a lot about them actually.

 

[Beej]

Re: Bananas Joyce wants end to Chinese investment in Australia.

We have already seen that the laws of our country can't protect our citizens when travelling in China (Stern Hu).

Can you please explain then how the "laws of our country" (ie Australian law) protects our citizens in ANY country on the entire planet outside of Australia?

Sorry but I read a statement like the above and tune out for the rest of your post.

Cheers,

Beej

 

[GumbyLearner]

Re: Bananas Joyce wants end to Chinese investment in Australia.

Try telling that to millions of their own repressed people - Uigher & Tibetans come to mind.

Only as recently as last February the US was trying to hammer them on Human Rights abuses, but were backing off because the Global financial Crisis was deemed more important an issue! http://www.cbsnews.com/stories/2009/02/25/politics/100days/worldaffairs/main4828748.shtml

Suddenly, because they have got oodles of cash to splash, these BAD guys have magically transformed into GOOD guys? Not-so-squeaky-clean IMO.

How dare you have an opinion you insolent thought criminal AJ? (just kidding mate )

Wouldn't it be great if we could talk the Chinese into including Falun Gong members on company boards?

 

[Happy]

Re: Bananas Joyce wants end to Chinese investment in Australia.

Joyce has good point, but I don't think we will do anything about it.

Australia is so sorry and so afraid to upset anybody that will rather surrender than stand up.

 

[bellenuit]

Re: Bananas Joyce wants end to Chinese investment in Australia.

Can you please explain then how the "laws of our country" (ie Australian law) protects our citizens in ANY country on the entire planet outside of Australia?

Sorry but I read a statement like the above and tune out for the rest of your post.

Cheers,

Beej

Why tune out? It was you who seem to suggest that all would be OK because they have to abide by the trade and industrial laws in this country. I was stating the fact that our laws are useless when it comes to protecting our citizens abroad. Normally that isn't an issue when most countries adhere to conventions in regards to people's rights. But when it comes to China, the law is not there to protect its citizens but to enhance the power of the state. When the state is also the one who owns the foreign business then those laws will be used to advantage that business in whatever way it can.

We are not talking about a back-lane repair works here, but major industries that require frequent travel to China and a significant presence on the ground in China in order to operate. When commercial information can be classified as state secrets at the whim of the government, we are not talking about the level playing field which free enterprise requires so that it can operate properly.

 

[daki]

Re: Bananas Joyce wants end to Chinese investment in Australia.

agreed Aus government is short sited ... but I think they are looking into it, and I'm sure they are aware of it, and situations like these ceternly keep it in mind

anyways who cares... the reason they might be shortsited is that the world might end in 2012... BOOOOOO

 

[boofhead]

Re: Bananas Joyce wants end to Chinese investment in Australia.

Joyce didn't say he wanted an end to Chinese investment directly. He didn't like the idea of Chinese government based companies investing in Australia although that pretty much means all Chinese investment overseas. He makes a good point about how company issues can become diplomatic issues. Diplomatically Australia is relatively weak especially against China.

 

[Mr J]

Re: Bananas Joyce wants end to Chinese investment in Australia.

Try telling that to millions of their own repressed people - Uigher & Tibetans come to mind.

You actually supported his point - China does not represent proper socialist or communist ideals.

 

[dutchie]

Re: Bananas Joyce wants end to Chinese investment in Australia.

At last a politician who is thinking about Australia's long term future and not just about cash tomorrow.

Australia must start thinking like the Chinese - long term - decades , centuries etc.

For our childrens' childrens' childrens' ..... sake.

Australia will never be a manufacturer - the three main assets we have that the rest of the world may want is food, mining & energy and brains (good education).

Food - if we can get our water problems sorted out and we can compete with rest of world with production and to market costs then good long term potential.

Mining - abundance of most, sort after, minerals - iron, oil, gas, uranium, coal (short term) copper, gold etc. Absolutely no need to try and develop every tin pot mine - just to make owners/directors rich at expense of long term sovereignty.

Brains - still a market for our brains (note number of scientist etc that need to go overseas to get a run/finance). Rest of world is catching up fast and we will soon lose this market.

So for our future generations sake we should not be selling any of our land or mines to overseas interests (especially not China!).

Short term financial gains of selling the farm/mine will be paid for by our children (see current GFC - who will pay for this - our children)

The longer any mineral etc. stays in the ground - the more it is worth.

 

[Nyden]

Re: Bananas Joyce wants end to Chinese investment in Australia.

Sounds good to me. While we're at it though, let's put a ban on foreign property ownership as well. Australia has lost too much of, well everything, already to foreigner countries.

 

[dbcok]

Re: Bananas Joyce wants end to Chinese investment in Australia.

It wasn't so long ago that the cry from Queensland was that the Japanese ownership of Queensland properties posed a threat to Australia.
And before that the coming invasion of Australia from Indonesia.Queenslanders were more aware of the threat than southerners because they were closer to the danger.
Something not in the water up there-no flouride at the time?

 

[startrader]

Re: Bananas Joyce wants end to Chinese investment in Australia.

If you're not concerned about the Chinese buying up Australian companies, property and resources you should be. There is no way they let other countries do the same in China. They have trillions of dollars in US denomination which they want to get rid of asap before the US dollar becomes worthless and they are doing that by buying everything they can get their hands on around the world. Good plan.

You can ridicule Barnaby Joyce all you like and make out he is dumb but at least he is thinking of the long term future of this country, unlike so many short sighted politicians these days.

 

[So_Cynical]

Re: Bananas Joyce wants end to Chinese investment in Australia.

Barnaby Joyce is a first class idiot with the political base of a Pauline Hanson.IMO

However im of the opinion that we should look at a 4 pillars type policy for the energy and resource sector....as its arguably more important than Banking, and the 4 pillars policy has helped protect the banking industry and make it strong and robust and therefore should help the top end of the energy and resource sector....even with BHP and RIOs's duel listings.

 

[GumbyLearner]

Re: Bananas Joyce wants end to Chinese investment in Australia.

Barnaby Joyce is a first class idiot with the political base of a Pauline Hanson.IMO

However im of the opinion that we should look at a 4 pillars type policy for the energy and resource sector....as its arguably more important than Banking, and the 4 pillars policy has helped protect the banking industry and make it strong and robust and therefore should help the top end of the energy and resource sector....even with BHP and RIOs's duel listings.

Didn't Barnaby Joyce unseat One Nation Senator Len Harris?