As China's outbound investment expands and more countries welcome Chinese capital, its investment in Australia has fallen sharply, exposing a widening gap between strong trade ties and weakening investment flows.
Analysts say the decline could undermine Australia's broader national interests by limiting access to leading Chinese technologies, underscoring the need for stronger political leadership in Canberra.
A recent report by the Australia-China Relations Institute at the University of Technology Sydney found that Chinese direct investment stock in Australia has dropped by A$11 billion ($7.83 billion), or nearly 25 percent, from its 2019 peak of A$47 billion. China now accounts for less than 3 percent of Australia's total foreign direct investment stock.
James Laurenceson, the institute's director and co-author of the report, said the focus should go beyond individual investment proposals.
"The overall trend is that Chinese investment in Australia is going backward at the same time as other countries are welcoming more and more Chinese investment, and when more and more Chinese companies are the technology leaders in their fields," he said.
