As part of the ongoing series of Demystifying Chinese Investment in Australia by KPMG and The University of Sydney, the April 2024 report analyses Chinese Overseas Direct Investment (ODI) into Australia in calendar year 2024.
In 2023, Chinese investment in Australia decreased by 57 percent, from US$1,420 million in 2022 to US$613 million. In Australian dollar terms, the decrease is 56 percent from AU$2,103 million in 2022 to AU$917 million. Eleven completed transactions were recorded in 2023.
Demystifying Chinese Investment in Australia – April 2024
Research on Chinese investment in Australia written collaboratively with the University of Sydney China Studies Centre.
Highlights of Chinese investment into Australia in 2023
Key findings:
- 2023 Chinese investment in Australia decreased by 57 percent, from US$1,420 million in 2022 to US$613 million.
- In Australian dollar terms, the decrease is 56% from AU$2,103 million in 2022 to AU$917 million.
- Between 2006 and 2023, an accumulated total of US$113,173 million was invested by Chinese companies in Australia.
By industry:
- Food and agribusiness represented 40% of the overall value through two deals in totalling AU$363 million.
- One energy (oil & gas) investment contributed 27% or AU$247 million.
- One renewable energy investment contributed 21% or AU$197 million of the overall value.
The global context
In 2023, overall worldwide Foreign Direct Investment (FDI) flows showed a slight recovery, increasing by 3 percent to reach US$1,365 billion, following a 12 percent decline in the previous year.
The 2024 UNCTAD Global Investment Trends Monitor showed a strong recovery of flows into developed countries and a further decline for developing countries. Notably, developed countries experienced a significant rebound of 29 percent, with FDI reaching US$524 billion, up from US$406 billion in 2022. Despite a 3 percent decrease, the United States continued to be the largest recipient country of global FDI.
Conversely, FDI into developing countries decreased by 9 percent to US$841 billion. Specific regions faced notable declines, including a 47 percent reduction in India, a 16 percent drop in the ASEAN region, and a 22 percent decrease in Brazil. China experienced a 6 percent fall in inbound FDI, according to UNCTAD's data. UNCTAD's forecast suggests a cautiously optimistic outlook for FDI in developing countries in 2024, underpinned by a surge in announced greenfield projects across India, ASEAN, China, West Asia, and Latin America, particularly in sectors closely linked to Global Value Chains.
Some major destinations for Chinese ODI such as the United States have seen Chinese investment fall to levels last seen more than a decade ago.
Contact KPMG's Asia Business specialists
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Demystifying Chinese Investment in Australia – April 2024
Research on Chinese investment in Australia written collaboratively with the University of Sydney China Studies Centre.
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