The Great Game Rebooted or the Long March to Acceptance? The Legal and Policy Impediments to Chinese Investment in Australian Corporations and Business Opportunities

UNSW Law Research Paper No. 2013-47

Centre for Law Markets and Regulation Working Paper Series No 12-4

20 Pages Posted: 14 Jun 2013 Last revised: 21 Jul 2013

See all articles by Justin O’Brien

Justin O’Brien

Harvard University - Edmond J. Safra Center for Ethics; University of New South Wales (UNSW)

George Gilligan

University of Melbourne - Centre for Corporate Law

Jonathan Greenacre

University of New South Wales (UNSW)

Date Written: September 1, 2012

Abstract

The rise of state capitalism poses profound questions for Australia. Long a beneficiary of China’s hunger for security of supply in natural resources, the country now finds itself increasingly as an investment target and source of business opportunities in sectors as diverse as telecommunications, natural resources and agriculture. As a consequence, elements of Australia’s legal and policy framework are coming under pressure. In particular, the operation of the Foreign Investment Review Board, created as a consequence of the Foreign Acquisition and Takeovers Act (1975), has now become a source of domestic political contestation. This paper explores the implications through the lens of the Australia in the Asian Century White Paper consultation process. It argues that ongoing ambiguity has the potential to undermine the cogency and coherence of the underpinning legal and policy framework. If unresolved it risks Australia becoming bypassed by the emergence of a new Southern Silk Road that positions China, in particular, at the centre of an integrated trading hub dominated by state capitalism.

Keywords: State Capital, Australia's Foreign Investment Policy, Asian Century

JEL Classification: G38, K20, P16

Suggested Citation

O’Brien, Justin and Gilligan, George and Greenacre, Jonathan, The Great Game Rebooted or the Long March to Acceptance? The Legal and Policy Impediments to Chinese Investment in Australian Corporations and Business Opportunities (September 1, 2012). UNSW Law Research Paper No. 2013-47; Centre for Law Markets and Regulation Working Paper Series No 12-4. Available at SSRN: https://ssrn.com/abstract=2278803 or http://dx.doi.org/10.2139/ssrn.2278803

Justin O’Brien

Harvard University - Edmond J. Safra Center for Ethics ( email )

124 Mount Auburn Street
Suite 520N
Cambridge, MA 02138
United States

University of New South Wales (UNSW) ( email )

Kensington
High St
Sydney, NSW 2052
Australia

George Gilligan (Contact Author)

University of Melbourne - Centre for Corporate Law ( email )

185 Pelham Street, Carlton, Building 106
Victoria 3010
Australia
+61 3 8344 1079 (Phone)

HOME PAGE: http://www.law-cclsr@unimelb.edu.au

Jonathan Greenacre

University of New South Wales (UNSW) ( email )

Kensington
High St
Sydney, NSW 2052
Australia

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