Address by The Hon Tim Fischer MP, Deputy Prime Minister, Leader of the National Party, Minister for Trade, to the Investment Seminar, Beijing, 9 September 1997

Distinguished guests, ladies and gentlemen.

I am delighted to be back in Beijing, my second visit as Deputy Prime Minister of Australia.

Last year I was involved in an Australian Investment Seminar in Shanghai, and it is fitting in this twenty-fifth anniversary of diplomatic relations between Australia and China that this investment seminar is being held in Beijing.

I would like to take a few moments to comment briefly on the Australian Government's foreign investment policy, on the advantages of Australia as an investment destination, on opportunities for Chinese investors, and on the steps which the Government is taking to further improve the business climate in Australia.

The Australian Government strongly encourages productive foreign investment that contributes to the development of Australia's industries and resources and is consistent with the needs of Australia.

The Government recognises that foreign capital supplements domestic savings and contributes to higher rates of economic and employment growth, particularly when that capital is directed into value-adding manufacturing and resource processing operations.

Foreign investment also represents a means to broaden existing bilateral trade relationships. On this 25th anniversary of the Australia-China relationship, the Australian Government welcomes investment by Chinese companies that complements and strengthens our already healthy trading partnership.

Australia compares very favourably on many of the key advantages sought by investors. We offer:

… a workforce that is well-educated, skilled, professional and experienced;

… first-class infrastructure services, including telecommunications, electricity, gas, water, waste disposal and transport;

… a world class scientific base for research and development;

… an abundance of natural materials and energy resources;

… a high quality of life and favourable climate; and

… a strategic location for ready access to markets in South East Asia and the South Pacific.

On a broader economic front, the outlook in Australia is for continued strong growth, low inflation and, before too long, faster employment growth. The Australian government's economic strategy is focused on continuing this positive environment for business.

Taking advantage of the benefits that exist in Australia for foreign investors, a number of Chinese companies have already established operations in Australia. Major investments include the Mt. Chennar iron ore mine in Western Australia and the Portland aluminium smelter in South Australia, while other projects include manufacturing, leather processing, mining and mineral processing, wool processing and agriculture.

 Considerable interest is currently being shown by Chinese companies in major emerging opportunities in agribusiness, direct reduced iron production in Western Australia, and non-ferrous metal processing. In the agribusiness sector, Australia is increasingly being seen as a logical overseas food base for China. 

With this in mind, the Australian Government believes that there are excellent opportunities for Chinese investors in Australia in the areas of:

… manufacturing (including food processing, iron and steel manufacture, timber products and other metals and minerals processing)

… agriculture and fisheries (including livestock raising, abattoirs, wool-processing and aquaculture)

… high-technology and R&D (specifically biotechnology, pharmaceuticals and computer software); and

… mining (including coal, gas and other natural resources).

The Australian Government is committed to creating a competitive business environment in order to attract further productive investment from Australian and international firms.

We have already made considerable progress and we are continuing our efforts in a number of areas including:

… vigorous micro-economic reforms to remove barriers to higher productivity, including in key sectors such as telecommunications, transport and energy;

… labour market reform to create a more efficient and flexible pool of labour for business;

… regulatory reform to reduce the burden of compliance and other costs on business; and

… much-needed taxation reform to make the existing taxation system more efficient and effective.

The Australian Government has also recently appointed a Major Project Facilitator to give specialised facilitation support to projects of national importance.

 In conclusion, ladies and gentlemen, I trust that you will find this seminar both interesting and informative, and I encourage you to consider the advantages of Australia as an investment destination.

 I am pleased to declare this seminar officially open.