China Wants To Play a Bigger Role In Australia
During a joint Australia-China business forum on April 26 in Beijing, a prominent Chinese leader announced that the country plans to take a more active role in Australia's economy. Chinese Vice Premier Li Keqiang announced that China wants to play a key role in the construction of Australia's infrastructure.
In construction sector Li Keqiang pointed to port and rail construction in Australia as potential areas that China could have greater involvement in. The Australian government is also planning an expansion of its National Broadband Network and Keqiang believes Chinese construction companies could play a role in the project. Australia is also in dire need of key transport infrastructure, with the existing network unable to cope with the rapid increase in export demand for the country's mineral resources.
"We would encourage capable and responsible Chinese companies to take part in Australia's construction sector," said Mr. Keqiang.
China's construction companies and equipment manufacturers have built up a presence overseas, predominantly in developing countries where, backed by cheap funding from Chinese banks, they are building much needed infrastructure.
But despite Australia's need for infrastructure, China's involvement in the sector may still face some roadblocks. Chinese construction companies operating in the developing world often bring in their own labor, causing some tension in the local communities in which they operate.
Many countries are now turning to China, which has accumulated huge foreign exchange reserves ($ 3.05 trillion- I qr., 2011.), and which quite willing to invest in various projects abroad. However, many appreciate such an active economic expansion not only as a cost-beneficial cooperation, but also as a sharp increase in China's political influence in these countries and in the world at large.
In construction sector Li Keqiang pointed to port and rail construction in Australia as potential areas that China could have greater involvement in. The Australian government is also planning an expansion of its National Broadband Network and Keqiang believes Chinese construction companies could play a role in the project. Australia is also in dire need of key transport infrastructure, with the existing network unable to cope with the rapid increase in export demand for the country's mineral resources.
"We would encourage capable and responsible Chinese companies to take part in Australia's construction sector," said Mr. Keqiang.
China's construction companies and equipment manufacturers have built up a presence overseas, predominantly in developing countries where, backed by cheap funding from Chinese banks, they are building much needed infrastructure.
But despite Australia's need for infrastructure, China's involvement in the sector may still face some roadblocks. Chinese construction companies operating in the developing world often bring in their own labor, causing some tension in the local communities in which they operate.
Many countries are now turning to China, which has accumulated huge foreign exchange reserves ($ 3.05 trillion- I qr., 2011.), and which quite willing to invest in various projects abroad. However, many appreciate such an active economic expansion not only as a cost-beneficial cooperation, but also as a sharp increase in China's political influence in these countries and in the world at large.
