Billionaires call for better China links

14 Sep 2012, 5:55 pm   -   Source: AAP
The media mogul believes that while the Chinese are keen to invest Down Under, they have begun to see Australia as an unfriendly and difficult place to do business. (Getty Images)

The media mogul believes that while the Chinese are keen to invest Down Under, they have begun to see Australia as an unfriendly and difficult place to do business. (Getty Images)

Kerry Stokes and James Packer are calling on Australia to improve its relationship with China, saying it has been marred by disrespect and xenophobia.

Billionaire businessmen Kerry Stokes and James Packer believe Australia has to show China a little more love and respect if it wants to deepen its trade relationship.

Speaking on Friday at a business conference about Australia's ties with China, Mr Stokes and Mr Packer both expressed fears that the relationship between the two countries was foundering.

Mr Stokes said part of the problem was because some Australian politicians had been disrespectful towards China, while Mr Packer said there were elements of xenophobia towards the Chinese.

Mr Packer said Australia had been "a less grateful friend than it should be" towards China.

"I think we as a country have to try harder to let China know how grateful we are for their business," he said.

"I think, simplistically as a layman, China has been a better friend to us than we have been to China.

"And I think that if that continues for long periods of time, friendships get damaged."

Mr Stokes said while the Chinese were keen to invest Down Under, they had begun to see Australia as an unfriendly and difficult place to do business.

Australia needed to get things back on track by moving beyond being just a key supplier of resources for its rapidly expanding economy.

"Resources are finite, so (Australian needs to) build services like education, tourism, people," the head of Seven Group and Seven West Media said.

"China still wants Australia to invest in China.

"They desire a partnership and they desire it to be built on mutually beneficial outcomes."

Mr Packer, whose Crown gambling and hotels empire holds a one third stake in a casino licence in Macau, agreed and said Australia had to think beyond resources and look to providing services to the Chinese.

"I think it is incumbent on Australian businesses to try harder to access the domestic Chinese market because it's going to be an incredible opportunity for the foreseeable future," he said.

Mr Packer congratulated Treasurer Wayne Swan for allowing the sale of Cubbie Station to a part-Chinese led consortium, saying it was disappointing that some Opposition politicians had criticised it.

Mr Stokes, who employs about 3,000 people in China, also praised the decision and took aim at those who were wary of Chinese investment in Australia.

Australian politicians should be welcoming China's desire to invest in projects in Australia, he said.

And he noted that Australian businesses had become frustrated by the fact that Australia had been the most sought after destination in China about 12 years ago, but was no longer.

The way some politicians spoke about China was partly to blame, he said.

Mr Stokes warned Australia faced a future when other countries would challenge it by offering to sell goods to China at much cheaper prices.

As a result, Australia should be embracing China and deepen its partnership.

"We want to be in a position when our prices then are not the only reason we trade with China," Mr Stokes said.

"Because if in the future price is the only reason, we will lose. Make no mistake we will lose.

"So we need to be planing now."

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