Some Aspects of China’s Investment Policy in Oceania

Beginning in 2003, the Chinese government began to streamline the process of approving, promoting, and supporting major investment projects overseas with Chinese funds. In particular, it regulated support for proposals to provide financial assistance, such as loans with favorable interest rates, to Chinese investment companies involved in overseas projects. In 2006, the Chinese government, led by Premier Wen Jiabao, focused on promoting and regulating foreign investment and cooperation between domestic companies and foreign businesses. The goal was to restructure the Chinese economy by using domestic development as a basis for international investment. These goals were further strengthened in the Procks 12th Five-Year Plan, which encouraged small and medium-sized private enterprises to invest abroad and streamlined foreign direct investment procedures. The government divided overseas projects into three groups: encouraged, permitted and prohibited. Government support has been primarily directed toward projects related to the development of natural resources in overseas countries and the development of infrastructure in those countries that require Chinese expertise. Projects that facilitate China’s access to internationally advanced technologies, promote the diffusion of Chinese technology and labor to the global market, and enhance China’s technological research and development capabilities by bringing in international experts are encouraged. Acquisitions or mergers with foreign companies are encouraged to enhance the global competitiveness of Chinese businesses in the international market. The Export-Import Bank of China (Eximbank) and the State Development and Reform Committee play a crucial role in implementing this policy. For China, Oceania is not a top foreign policy priority. However, this region is increasingly attracting Chinese attention.