Australians can already invest in China like all other foreigners. The Chinese have two types of shares (maybe three if you include the shares held by the government). One type (the majority of shares) is for Chinese only and foreigners are not allowed to own these. The second class of shares gives foreigners the right to own share that may also be owned by Chinese but there are a range of restrictions such as they do not get to vote on what is done by the company (and do not vote for directors).
What Rudd has done is to pander to his masters in Bejing. At the rate he is going this will be a one term Labor govt, or he will be replaced before the next election by some one like Greg Combet, who best articulated the case against Howard's crazy IR laws.
