Mood: not sure
Topic: aust govt
Another dimension of the great China engages with the world story, apart from the Olympics corporate circus is the question of whether and to what level China Inc (that is vertically integrated to the heart of the one party central Beijing Govt) should be permitted to invest in flagship companies in Australia, with Australian assets:
- 10 April 2008 Securing a stake in the big Australian | The Australian
- 10 April 2008 Chinese whispers give BHP extra ammo | smh.com.au
Pure market economics suggests their money is as good as anyone's only China Inc is not orthodox market participants given the political economic control by their Beijing Govt overlords. They can be expected to exercise their political influence in favour of China every time even to the detriment of Australia or even their own Australian based company.
Similar questions came up with Shell stalking Woodside to appropriate future profitability of the North West Shelf. All kinds of sophistry was used to justify approval through the Foreign Investment Review Board. Then Treasurer Costello rejected all these blandishments and shallow claims of being anti free market.
We tracked the very serious political fight way back then here:
Similar issues of probity and integrity might be expected to apply to China Inc seeking a share of BHP.