Chinese foreign direct investment in the Australian resource sector

Abstract

The appetite for resources in the rapidly growing Chinese and Indian markets before the global financial crisis drove escalating interest in resource investment worldwide (Streifel 2006; ABARE 2008). These economies have now emerged themselves as major players in overseas resource investment and development. The global economic crisis has not dampened Chinaʹs appetite for investment in Australiaʹs resource sector and the shortage of international capital has further enhanced the attractiveness of investment alliances with Chinese partners. North American and European investment dominated the international resource industry in its early days, often through vertically integrated operations that incorporated the supply of metal