Business Submission on Chinese Foreign Investment and Ownership on Behalf of Business Council of Australia
On the same note, it makes recommendations on task force appointments as per the concerns of its members and those of the committee. Similarly, it is responsible for ascertaining and expounding policy issues, and giving recommendation on the BCA policy agenda (Bell, 2008). The council offers a setting for business leaders in Australia so as they can be in a position to participate directly in the debates on public policies. Therefore, this has helped in the instigation and shaping of critical business reform discussions that have fortified Australia’s economic recovery. In the long run, the indigenous Australians will achieve their potential through the provision of social and economic working conditions by the Business Council of Australia. The federal government of Australia has been promoting foreign investment through the issuance of minimal restrictions on the investment on real estate and media.
Consequently, this has led to high living standards in most urban cities in the nation due to the over-priced products and services offered by the Chinese. The local companies and businesses have also failed to develop due to the high completion from the foreign firms that kicks them out of the markets. Similarly, the locals have not managed to be innovative since they rely heavily on the skills and experiences of the Chinese and other foreign investors (Bucifal et al. , n. In the long run, this has seen many native companies run into financial distress and eventually fall. The existence of a close relationship between the local politicians and Chinese businessmen has led to the rise of corruption deals in the country.
Henceforth, the politicians have gone to an extent to do anything to make sure that their business partners get a big share of government contracts (Wijeweera & Mounter, 2007). The chain of the cartels that has been created has made many locals suffer on their hands as they aim to maximize profits. Sub-standardized and counterfeit goods have risen in the entire Republic since the entry of the Chinese to Australia to carry out different investments. If the government won’t act in time through implementing the suggested policy, the youth may turn to criminal activities that will pose a threat to the economic development of the country (Harte & Barton, 2007). In the long run, the issue will scare local investors who will decide to channel their investments in foreign nations.
The increased and uncontrolled foreign investments by the Chinese have made Australia more dependent on China for many operations. The political decisions that Australia make with other nations have to be accepted by China so that they would continue to cooperate in their day to day dealings. As a result, this has led to political and economic differences between Australia and other nations such as USA that are rivals with China (Karabay, 2010). The immigrants have utilized this rare opportunity to fully maximize on returns on the different businesses that they run and send the income back to their homeland for development (Knutsen, Rygh, & Hveem, 2011). Consequently, China has been able to expand rapidly through the income it gets from Australia. Similarly, the economy of Australia has fallen as everything is being taken by the Chinese.
Duties and other taxes have been put in place by the Chinese government so that it can be able to tax all exports that it makes to Australia. Therefore, if the policy is implemented, the federal government will be able to find imports from other nations that are cheaper and subsequently improve its economy. , Kurtz, J. , Nottage, L. , & Trakman, L. The Fundamental Importance of Foreign Direct Investment to Australia in the 21st Century: Reforming Treaty and Dispute Resolution Practice. SSRN Electronic Journal. 1057/pol. 21 Bucifal, S. , Kinnayong, V. , Healy, K. , Han, X. , Wang, C. , & Clegg, J. The impact of foreign ownership, local ownership and industry characteristics on spillover benefits from foreign direct investment in China. International Business Review, 16(2), 142-158. http://dx. org/10.
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