No Chinese investment barricade: Ferguson Robert Fenner April 28, 2008
THE Government has not told Chinese investors to withdraw applications to invest in domestic commodity producers, says Resources Minister Martin Ferguson.
"There's been no suggestion that China or any other investor should back off," Mr Ferguson told ABC television.
A report last week said at least 10 Chinese companies had been told to withdraw applications to the Foreign Investment Review Board and submit them at a later date so the board can consider their "national interest" merits.
Some of the Chinese applicants were seeking advance approval for future stakes in Australian companies that were yet to be publicly announced, it was reported.
Mr Ferguson said the Government did not draw a distinction between public companies, private investors or sovereign-wealth funds, with all investment assessed on "national interest" measures.
"China is strategically placing a lot of money in Australia in the resources sector at the moment," Mr Ferguson said. "Each of those investments will be considered on merit.
"As China makes investments, some will be rejected, some will be changed to meet our national interest test, that's no different to previous investments by countries out of key markets such as Japan and Korea."
Foreign investors must seek government approval on spending of more than $A100 million in an Australian company. The review board advises Treasurer Wayne Swan, who can object to any investment.
In Shanghai, a senior official at the National Bureau of Statistics was quoted as saying that China would find it difficult to meet its target of keeping inflation to about 4.8% this year. "The 4.8% figure is an aspiration, and the figures for the first quarter suggest this target will be very hard to hit," Peng Zhilong, director-general of national accounts, said.
Mr Peng said five factors were preventing a downturn in inflation, which surged to an annual rate of 8% in the first quarter of 2008.
They were excessive demand caused by rapid economic growth; flows of money into China for trade, investment and speculation; rising wages; the central bank's interest rate hikes, which had raised companies' costs; and rising asset prices.
However, Mr Peng said it was premature to talk about the possibility of China facing stagflation.
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