U randauine Investments Mineral resources are a significant, but not the largest part of China's OD/ 60% g20% 0% 20032004200520062007200820092010 ·MIN|NG· METALS· ELECTRICITY·PETR0 CHEMICALS· 11
11 Mineral resources are a significant, but not the largest part of China’s ODI 0% 20% 40% 60% 2003 2004 2005 2006 2007 2008 2009 2010 Share of China’s ODI
U randauine Investments Iron ore and copper make up 60% of Chinas mineral resource sector OD/ 100% 80% 60% 40% o% % Iron ore Cu Al Pt Au Other 12 ·MIN|NG· METALS· ELECTRICITY·PETR0 CHEMICALS·
12 Iron ore and copper make up 60% of China’s mineral resource sector ODI 0% 20% 40% 60% 80% 100% Iron ore Cu Al Pt C Au Other
U randauine Investments The Heritage Foundation has identified a further US$122 billon of troubled investment $140 $120 00 $80 $60 $ 40 20 Agriculture Energy Finanace Metals Technology Transport property 2006to2010 ·MIN|NG· METALS· ELECTRICITY·PETR0 CHEMICALS· 13
13 The Heritage Foundation has identified a further US$122 billon of troubled investment $0 $20 $40 $60 $80 $100 $120 $140 Agriculture Energy Finanace & property Metals Technology Transport 2006 to 2010
U randauine Investments Australia not the only difficult destination, but natural resources are mostly a problem Total value Most troubled Most troubled uSS billion) sector destination 2006 34.5 Energy Iran 2007 3.7 Agriculture Philippines 2008 33.2 Finance Germany 2009 33.1 Metals Australia 2010 7.6 Metals USA ·MIN|NG· METALS· ELECTRICITY·PETR0 CHEMICALS· 14
14 Australia not the only difficult destination, but natural resources are mostly a problem Total value (US$ billion) Most troubled sector Most troubled destination 2006 34.5 Energy Iran 2007 13.7 Agriculture Philippines 2008 33.2 Finance Germany 2009 33.1 Metals Australia 2010 7.6 Metals USA
U randauine Investments Summary of key issues relating to China's Australian bound oD/ While its level of investment is growing, China is still a 1 minor player in Australia's FDI Almost all the proposals submitted to the Firb are approved, though some have conditional obligations Minerals resources account for 56% of Australia's FDI but almost all of Chinese investment Mineral resources differ significantly from other forms of investment ·MIN|NG· METALS· ELECTRICITY·PETR0 CHEMICALS· 15
15 Summary of key issues relating to China’s Australian bound ODI 1 • While its level of investment is growing, China is still a minor player in Australia’s FDI 2 • Almost all the proposals submitted to the FIRB are approved, though some have conditional obligations 3 • Minerals resources account for 56% of Australia’s FDI, but almost all of Chinese investment 4 • Mineral resources differ significantly from other forms of investment