Chinese investment good for Aust: Carr

2 Sep 2012, 10:53 am   -   Source: AAP

Chinese investment in Australia is a good deal for the nation, Foreign Minister Bob Carr says.

Foreign Minister Bob Carr says Chinese investment in Australia is a good deal for the Australian nation.

Concern over foreign investment in Australia, particularly by state-owned enterprises, was raised again in the past week.

It followed Treasurer Wayne Swan's approval for the sale of Australia's largest cotton grower, Cubbie Station, to a Chinese-dominated consortium.

"We accept the situation that our biggest customer (China) will, from time-to-time, see it appropriate to own a bit of an Australian business," Senator Carr told Sky News on Sunday.

"That would be a good deal, that will keep them buying from us."

China accounted for 29 per cent of all Australian exports in the year ending June 30.

Senator Carr said Chinese investment in Australia was happening "very slowly".

"China can continue to underpin a great deal of prosperity by buying from us, but on the way through, they will want to do a bit more of what they're already doing," he said.

This included owning an iron ore or uranium mine.

He said direct foreign investment from China was one per cent, while 27 per cent was from the US.

Opposition regional development spokesman Barnaby Joyce on Saturday labelled the sale of Cubbie Station as a disgrace and accused Mr Swan of failing the community.

Under the terms of the approval, textile manufacturer RuYi - owned by investors based in China and Japan - will initially take an 80 per cent stake in Cubbie.

That will be sold down to 51 per cent within three years.

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