Chinese investment has increased from virtually zero to becoming Australia’s fifth-largest source of foreign direct investment over the past decade. Chinese investment has grown with the spectacular rise of the Chinese economy, and it is just the latest wave of Asian foreign investment to chase commercial opportunities in Australia, initially in resources, property, infrastructure and agriculture.
China has been in negotiations with the European Union for some time regarding an investment pact. However, those negotiations have accelerated of late, and it appears this traces back to the government’s desire to counter American influence in this region, and to block many more favorable investment treaties for the United States. To that end, the once intractable China has now signaled a desire to make compromises to facilitate a final investment pact early next year.
When it comes to Asian companies investing abroad, Italy has traditionally been a rather neglected destination. Asian companies remained spooked by the weakness of the Italian investment climate after decades of red tape and political interference. As a result, there are no large Japanese or South Korean plants in car making and consumer electronics. These companies preferred other Western European countries in the 1980s and 1990s before turning to Eastern Europe.
More so than any other developing country, China has benefited profoundly from foreign direct investment (FDI), using it as rocket fuel to launch the country’s economic development. FDI provided the technology, managerial expertise and capital needed to propel China from an isolated, poor, agricultural economy in the late 1970s into the industrial export powerhouse and burgeoning technology player it is today.
Investment must be the most misunderstood part of the Australia–China economic relationship.
It is well known that China invests in Australia. But get this: the Australian Bureau of Statistics says that there is nearly as much Australian capital in China as there is Chinese capital in Australia, AU$29.6 billion (US$23.5 billion) compared with AU$31.9 billion.
Bretton Woods (BWR), a research firm based in New Jersey, released a report in March 2015 detailing the countries with the best options for investors for the next three months. The report examined 46 nations and ranked them based on supply-side economic analysis principles. Thus, for those that do not subscribe to this particular school of economic thought, this warrants caution.
The top ten countries (according to BWR) are as follows:
10. Philippines
Fast growing economies in Asia took up a quarter of the world’s foreign direct investment in 2011, as its share of the investment pie increases at the expense of the European Union. which saw its share tumble from 42 percent in 2007 to 28 percent last year.
The figures come from the World Investment Report 2012 released by the United Nations Conference on Trade and Development yesterday.
Cross Boarder Merger and Acquisitions over the world has grown very strongly these days. In the year 2006, cross boarder merger and acquisitions increased at a rate of 23 percent. Growing value of merger and acquisitions was largely contributed by the better performance of the stock market and increased asset value of enterprises.
Number of deals among the enterprises globally reached at a record level led by desires among the firms to take part in global competition.
