China’s growing influence in Australia has led some to wonder just how much of the country is now owned by Chinese interests. With significant Chinese investment in Australian real estate, infrastructure, and resources, concerns have emerged about China’s impact on Australia’s sovereignty.
Chinese Migration to Australia
Chinese migration to Australia has a long history, with the first major wave occurring during the gold rushes of the 1850s. Chinese miners flocked to Australia, especially Victoria and New South Wales, hoping to strike it rich. By 1861, the Australian census recorded that 3.3% of the Australian population was Chinese-born.
Anti-Chinese sentiment led to restrictions on Chinese immigration in the late 1800s, but migration picked up again after these were lifted in the 1960s. The 2016 census showed that 5.6% of Australians were born in China, making China the second largest source of migrants after the UK.
In total, there are now over 1.2 million people living in Australia who were born in China. When including Chinese Australians – those with Chinese ancestry but born in Australia – the total Chinese Australian population is estimated at over 1.5 million, or about 6% of Australia’s population.
Chinese Investment in Australian Real Estate
There has been rapid growth in Chinese investment in Australian residential and commercial real estate over the past decade. Media reports suggest Chinese buyers account for up to 10% of new Australian housing stock, concentrated heavily in Sydney and Melbourne.
In 2010, Chinese investment in Australian real estate totaled just $3.7 billion. By 2020, this had grown over ten-fold to $44 billion. Chinese capital now makes up the largest source of foreign investment in Australian residential and commercial property.
| Year | Chinese Investment in Australian Real Estate (AUD billions) |
|---|---|
| 2010 | $3.7 |
| 2015 | $24.3 |
| 2020 | $44.0 |
High profile Chinese real estate purchases include the $300 million acquisition of Sydney’s Sheraton on the Park hotel in 2018 and a half-share purchase of Melbourne’s Grosvenor Place towers for $225 million in 2019.
While Chinese buyers initially focused on new off-the-plan apartments, particularly in dense inner-city areas, they have diversified into other property types including detached housing, commercial buildings, hotels, retirement villages, and agricultural land.
Chinese Ownership of Australian Infrastructure and Utilities
Chinese state-owned and private enterprises have made substantial investments in Australia’s infrastructure and utilities sectors. Motivations include seeking stable long-term returns and, in some cases, securing access to strategic assets.
Key examples of Chinese ownership of Australian infrastructure include:
- A 99-year lease of Darwin port acquired by Landbridge Group in 2015
- A 50-year lease of the Port of Newcastle acquired by China Merchants Group in 2014
- A 20% stake in Transgrid’s NSW electricity transmission assets acquired by State Grid Corporation in 2015
- Full ownership of Alinta Energy’s gas and electricity assets acquired by Chow Tai Fook Enterprises in 2017
Other Chinese enterprises own stakes in ports, airports, railways, power grids, gas pipelines, water utilities, and telecoms across Australia. Strategic ports and energy infrastructure are of particular interest given their importance to the Australian economy.
Chinese Investment in Australian Resources
China’s rapid industrialization has fueled demand for Australian resources exports, especially iron ore, coal, liquefied natural gas (LNG), gold, and copper. Australia is by far China’s largest source of imported commodities.
Seeking to secure access to these critical mineral resources, Chinese state-owned and private enterprises have invested heavily in Australian mining and energy companies and projects. Examples include:
- China Shenhua Energy owns 75% of the Watermark coal mine in NSW
- China Molybdenum Co. owns the Northparkes copper and gold mine in NSW
- Yancoal Australia is 78% owned by Yanzhou Coal Mining Company
- Citic Pacific Mining owns the Sino Iron ore project in Western Australia
Chinese companies also hold minority stakes in major Australian resource companies like Rio Tinto, BHP, and Fortescue Metals. Australian resources are clearly important to the Chinese economy.
Extent of Chinese Ownership in Australia
There are no definitive estimates on what proportion of Australia’s total assets are Chinese-owned. However, based on the data available, estimates suggest:
- Around 10% of new housing stock in Sydney and Melbourne is sold to Chinese buyers
- Up to 15% of commercial real estate in major Australian cities may now be Chinese-owned
- Over 10% of Australian agricultural land uses some level of Chinese capital
- About 15% of shares on the Australian Securities Exchange are owned by Chinese entities
- China accounts for about 25% of total foreign investment in Australia
While these figures are not insignificant, claims that China owns vast swathes of Australia appear exaggerated. Australia remains an attractive destination for Chinese capital, but total Chinese ownership is likely still in the single digits as a proportion of Australia’s total assets.
Impact on Australia’s Sovereignty
Concerns exist that China’s growing economic footprint in Australia could translate into undue political influence and risks to national sovereignty. However, Australia remains a robust liberal democracy with strong institutions and regulations governing foreign investment.
Key factors likely limiting any threats to sovereignty include:
- Most Chinese investments still require approval from the Foreign Investment Review Board
- Critical infrastructure has so far only been sold long-term leases, not given away
- No evidence suggests Chinese-owned companies operate contrary to Australian laws and interests
- Only a small fraction of Australian politicians accept donations from Chinese-linked sources
- Important assets like resources and land remain ultimately under Australian control
While vigilance is warranted, the economic benefits from Chinese investment and trade have so far outweighed concerns around undue influence. Ongoing public debate and policy reform can help balance openness with protecting Australia’s sovereignty.
Conclusion
In summary, Chinese migration, investment, and ownership in Australia has grown substantially in recent decades. However, claims of vast Chinese control of the country appear exaggerated. The large majority of assets remain in Australian hands.
While China’s economic footprint in Australia is large and often strategically motivated, robust institutions and regulatory oversight have so far prevented any major erosion of Australian sovereignty.
With appropriate policy settings, Australia can continue benefitting from Chinese capital inflows and engagement, while safeguarding the public interest and national sovereignty.