Striking a Balance !

The Australian government is moving quickly to apply new migration laws to avoid overseas money being invested in industries that are vital to our trading position.  In a carefully worded speech, Treasurer Josh Frydenberg did not mention China, but it was cleary obvious that this was the prime target.

Frydenberg made it clear that new rules will now apply and the government will have the power to order disinvestment even after a sale has been approved.  Preserving our national interest is the test that will apply and that is likely to run counter against a tactic of the Chinerse Communist party which adheres to a policy known as  " yi shang, hi zhang " which translates into "using business to pressure governments ".

All this harks back to the 2018 decision to ban Chinerse electronics firm Huawei from having any connection with out 5G communication network upgrade.  It was feared thast allowing Huawei to blend both its expertise and its technical innovations into 5G would allow China to eavesdrop conversations and  intercept coded messages to the detriment of our business commuinity.

China is out biggest trading partner and it is clear that they intend to use the advantage this gives them to pressure Australian government decision making.  The export of Australian beef and barley to China has been reduced and the ever growing market for Australian wines is under threat.  All this is coming at a very bad time as we struggle to emerge from the isolation caused by the coronavirus.

There is another aspect of Chinese trade and Chinese migration to Australia that will distort our new approach.  Back in the days when the British lease on Hong Kong was being negotiated in a return to China a lot of very rich Hong Kong families established a bolt hole in Australia in case the situation deteriorated.

The estblishment of that " One country, two systems " solution eased tensions but there are many Hong Kong Chinese who have citizenship rights here and right now China is in the process of rolling back that agreement with Britain and forcing Hong Kong to toe the Communist line.  It is likely that Hong Kong residents with entry into Australia will be moving their money and their family here as a safety measure.

We would not want to slam the door shut if Hong Kong deteriorated into a blood bath but it is quite clear that Hong Kong is not going to go peacefully without a fight.  Millions of the city citizens have taken to ther streets in noisty demonstrations and it seems inevitable that eventually China will send in the PLA, and there is still the threat of an invasion hovering over Taiwan.

It seems that Chinese people and Chinese money pose problems.  We need to diversify our over balanced  reliance on Chinese trade and that will be difficult.  But we need to remember that not all Chinese are Communists.