Oz trying to curb Chinese investment

Australia’s changes to foreign investment rules in 2009 were aimed at limiting Chinese investments in local mining companies, according to confidential US embassy cables.

Australia’s changes to foreign investment rules in 2009 were aimed at limiting Chinese investments in local mining companies, according to confidential US embassy cables.

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Treasury’s head of foreign investment, Patrick Colmer, briefed US embassy officials on the new rules in September 2009.

The diplomats then reported that Australia privately wanted to “pose new disincentives for larger-scale Chinese investments”, according to the cables, obtained by Wikileaks and reviewed by Reuters.

Treasurer Wayne Swan on Thursday denied the rules were aimed at China, but said they were designed to clarify Australia’s position on applications from foreign state-owned enterprises.