GOING OUT WHY CHINA’S 12 TH FIVE YEAR PLAN IS A GAME CHANGER
Transcript
1. GOING OUT WHY CHINAS 12TH FIVE YEAR PLAN IS A GAME
CHANGER
2. CHINAS PRIORITIES Going Out Going West Going Green CHINAS
12th FIVE YEAR PLAN (2011 2015) CHINA
3. CHINA GOING OUT Australia is the top offshore destination
for China Australia Singapore Other Asia Africa Russia Other Europe
Latin America Canada US
4. CHINESE INVESTMENTS IN AUSTRALIA .. but still v small
compared to total OFDI 0 5 10 15 20 25 US UK Japan Netherland
Switzerland Singapore British Virgin Islands Canada Germany China
Top OFDI countries in Australia % of Australia total OFDI stock in
2011 Source: ABS
5. CHINESE INVESTMENTS IN AUSTRALIA .. but were slipping behind
Top destinations of Chinese OFDI USD billions, transaction value
over USD100 million 0 10 20 30 40 50 Australia US Brazil Canada
Indonesia Britain Russia Thousands Jan 10 - Jun 12 Jan 05 - Dec 09
Excludes US$15bn investment in Canadas Nexen Source: A long march:
the Australia-China investment relationship By John Larum and
Jingmin Qian, October 2012
6. CHINESE INVESTMENTS IN AUSTRALIA .. and 80% of investment is
in mining Source: KPMG Demystifying Chinese Investment
7. CHINA GOING OUT POTENTIAL FUTURE TARGETS
Food/Agriculture/Dairy Tourism Education Healthcare Financial
Services Technology Cleantech Software Professional Services
8. CHINA GOING OUT KEY DRIVERS Security of Supply
Diversification Migration Growth Influence
9. City of Chongqing (Population 30 million)
10. CHINA GOING WEST Urbanisation Welfare Rising Incomes
Domestic Consumption
11. CHINA GOING GREEN Development of clean technology - US$65
billion spent each year, with renewable energy spending growing at
77% p.a. since 2008 New renewable energy sources (hydro, nuclear,
solar, wind, biomass and more efficient use of coal and existing
energy sources) Clean energy vehicles reduce dependence on fossil
fuels and improve the environment 40% to 45% reduction in carbon
intensity from 2005 levels by 2015
12. OPPORTUNITIES
13. CHINAS PRIORITIES IN THE MINING SECTOR Industry
consolidation to improve efficiency, safety and environmental
performance Reduction in dependence on fossil fuels SOEs
diversifying into multi sector mining companies Outbound investment
requires greater scrutiny to deliver better outcomes
14. WHY NSW AND AUSTRALIA? 40 years of diplomatic relations
Australia and China NSW is a sister state of Guangdong Province
(since 1979)
15. PRIME MINISTERS VISIT APRIL 2013 Three Tangible Outcomes:
Annual Leaders Strategic Dialogue Direct Trading in AUD/RMB RBA to
invest 5% of current reserves into Chinese Government debt
($1.6bn)
16. WHY NSW AND AUSTRALIA? 40 years of diplomatic relations
Australia and China NSW is a sister state of Guangdong Province
(since 1979) Geographical convenience (time zone, logistics,
transportation costs etc.) Stable legal, political, economic and
regulatory climate High quality product, environment, safety and
infrastructure