I actually understand very well that China not only wants all of our resources but also the whole of Australia. After all they protested to the Howard govt when there was some noise about us setting up a base in the North west shelf area of WA, and this should have been a key signal of China's long term intentions here. We never went ahead with that base.
China does not mean to make us rich. Rather they will work to destablise us, by creating some (short term) winners) who will work in their interests (in fact they already have that). Press report I read about 2-3 years ago clearly have them complaining that they were "making us rich" and that they should be allowed to get the benefits of this.
China will simply pick off each company over time. That is what a large united country (in the sense that the central govt can not be successfully challenged) does.
As for all that money that China is supposed to have, actually we are giving it to them by de-industrialising and allowing them to use foreign exchange manipulations to become excessively cheap (besides the $trllion or so in stolen intellectual property rights it got from the west).
In essence we are getting a bit of short term consumption (often very low grade) for the loss of real assets. In effect they will use the profits from the mines they own here to buy up even more local assets just as Xstrata does with its profits from its MIM acquisition (while at the same time using transfer pricing to lower reported profits to avoid tax, and evade tax as far as possible, which is easily done as News Corp used to pay under 2 cents in each dollar of profit).
In actual fact China is a relatively poor country, and should be using much of its foreign excahnge to buy capital goods from the more industrialised west to help build its infrastructure. They will not do this because it suits them to use the foreign exchange as a sort of a weapon. Good luck reasoning with a country that has no respect for Tibet and is re-populating it with its own people.
There must be good reasons why Asian countries do not trust China. Learn from them.
On top of that we are getting a very large population transfer into Australia to keep us down in a lower level of living on the false basis that the resource boom or whatever requires this. China has demanded the right to bring in its own workers and wants specific areas set aside for it (eg a large bauxite province in QLD that Chinalco is pushing to develop exclusively).
The resource boom is being mismanaged for the benefit of a range of self-interested parties and will turn into a crok of poop for most of Australia in the longer term.
Yes, I am trying to survive in an increasingly crazy world by investing in resource companies. But I am not blinded by what is happening around me, or the ability of China to use its local friends in the law and finance to crush the local shareholders.
