Australia

Australia-China corridor 

Australia is the biggest single country destination for Chinese direct investment. Yet, impressive as that may seem, Australia represented only 2.5 percent of China’s global investment spend over the past 6 years (equating to USD $38 billion).
Australia-China corridor

Doug Ferguson

Doug Ferguson

National Leader, Asia Business Group

+61 2 9335 8467

 

Australia China Business Practice contacts

Contact KPMG's Australia China Business Practice for further information on how we can help.

In 2010 alone, China's global direct foreign investment reached USD$68 billion, five times the outbound investment total for 2005. Should Australia's share increase to a mere 3 percent in the coming decade, the volume increase will be massive.


China's changing focus
Driven by the State's 'Go-Global' strategy, Chinese enterprises have focused on expanding direct investment abroad to secure raw materials and energy. With the release of the 12th Five-Year Plan in 2011, an economic re-balancing has commenced. A focus on sustainable, renewable and broad investments will grow, as the focus of growth shifts towards increasing its domestic market and boosting home grown consumption, and away from an over-reliance on the exports industry.


Business strategies are being reshaped and the acquisition of assets to make China's firms more competitive at home and abroad is a key motivating factor.

 

Australia's response
The expected increase of Chinese capital seeking investment opportunities requires a strategic response from Australian businesses in order to realise and maximise the benefits. We believe that having a clear China strategy is essential for the future growth of all Australian businesses.


Joint ventures, partnerships and other innovative arrangements with Chinese partners should be considered. We see immediate opportunities to leverage Chinese interest in acquiring assets and expertise in energy and resources, infrastructure, agriculture and financial services. However a broad range of Australian industries have been recipients of Chinese investment money in recent years, including manufacturing, transport, construction, business services, and wholesale and retailing.

 

How we can help
Our Australia China Business Practice assists Chinese businesses to invest and grow in the Australia market, and assists Australian companies looking to enter China.

 

We assist our clients to develop and successfully execute transactions to capitalise on the business and investment opportunities arising from China’s growth.

Edwin Fung


"The Five-Year Plan could have implications for the way you manage your people, the locations you operate in and the decisions you make in terms of investment in areas such as R&D, logistics, or procurement."

 

Edwin Fung

Global Chair, Global China Practice

China's 12th Five-Year Plan: Overview

China's 12th Five-Year Plan: Overview
China's 12th Five-Year plan focuses on increasing its domestic market and boosting home grown consumption.

China

Our Australia China Business Practice assists Chinese companies investing in Australia and supports Australian companies investing in China.

Demystifying Chinese investment in Australia

China insights
Research on the future of reciprocal trade between Australia and China written collaboratively with the University of Sydney China Studies Centre.