Real Message Is Clear

China’s boom has filled its coffers with lots of cash. Some nations, including Australia, want to slow the fast pace of China’s foreign investment – taking time to assess consequences. The most recent takeover target is West Australian iron-ore producer Midwest by China's Sinosteel, and the latter could be on the hunt for other iron-ore producers, reports Jennifer Hewett for the Australian Business. “China's growing interest in Australian resources companies was evident and clearly likely to increase dramatically,” writes Hewett. Australia allows foreign investment without discrimination and with a 30-day application period, but China’s tremendous wealth, keen interest and rigid government control has prompted requests for voluntary delays in some applications. The high demand for commodities, the speed of transactions and complex multinational partnerships of some firms add to market confusion. Australia and other nations must examine their motivations and be careful about signals sent on foreign investment. Slowing trade might allow for better planning, but any hint of discrimination could cause painful disruptions. – YaleGlobal