Changing foreign investment rules caused by the seemingly discriminatory, xenophobic Australian politics is starting to frustrate Chinese investors who only want a level playing field in a fair, open and competitive marketplace.
The world's economy continues to be plagued by the hangover of the U.S.-induced Global Financial Crisis, with the burden, it seems, placed on China's economy and its increasing investment dollar to help sustain global growth levels.
While Australia says it welcomes Chinese investment and wants to increase bilateral trade, actions seem to be speaking louder than words following recent knee-jerk reactions by political leaders for popularity reasons that now risks their transition from mining led growth.
POLITICAL REACTIONS
Australia's foreign investment regime changes appear reactive to China's investment into a country that has burgeoning business opportunities under open, established rules and what is now arguably a transparent political process.
The long-term lease of Darwin's port to Chinese-backed Landbridge flamed the internal political debate surrounding direct foreign investment into Australia, focusing on the Chinese, a re-incarnation of similar debates regarding U.S. and Japanese investments over Australia's history.
After Australia's Prime Minister Malcolm Turnbull was publicly derided by U.S. President Barack Obama over the issue - Australia houses a rotating deployment of U.S. Marines in Darwin - Australian Treasurer Scott Morrison rushed to the cameras claiming foreign investment rules would be reviewed.
Under current Australian law, assets owned by Australian states are not subject to approval by the Foreign Investment Review Board (FIRB), however Australia's defence officials had consulted with the Northern Territory government over the long-term lease and found no issue.
On the same day, Morrison declared Australia's largest cattle ranch, S. Kidman & Co, could not be sold to a foreign bidder, citing Australia's national interest.
The two bidders at the pointy end of negotiations were both Chinese who see the potential of Australia's agriculture industry and were prepared to pay upwards of 350 million Australian dollars for the ranch.
While the Kidman operation encroaches on part of Australia's Woomera defence testing area - which is now likely to be excluded from the sale - Morrison also noted the 2.5 percent agricultural land holding in his statement.
"This is a significantly larger than the next biggest rural landholding in the country," Morrison said.
This is despite larger producers than Kidman's 185,000 head of cattle being owned by foreign interests in higher rainfall areas of Australia.
As a special arid zone cattle producer, the Kidman operation requires large swathes of land.
It's understood the relevant parties are now undergoing consultations to salvage the sale.
