Mining magnate brands Aus racist

Sydney - Racism rather than the national interest explains why Australians are wary of Chinese investment, a mining magnate told a Brisbane business meeting on Tuesday.

"I think it's one of the worst things that can happen to Australia to extend our racist policies into Asia," Clive Palmer said.

Palmer, who claims to be Australia's richest person and who has close business ties with Beijing, said the Chinese did not like "the idea of being discriminated against because of the colour of their skin" and would invest elsewhere if their ambitions were thwarted.

China is now the third-largest foreign investor in Australia after Britain and the United States, and would easily rise to the top spot if restrictions were removed.

"We've got the opportunity to grab that if our politicians could only be fair and treat the Chinese people and Chinese government with the dignity they deserve," Palmer said.

He specifically criticised the Foreign Investment Review Board (FIRB), which advises the Treasury on what investments it ought to accept and which ones to reject on the basis of the national interest.

Palmer also said it was unfair that US citizens benefited from a free trade deal and invest freely in Australia whereas Chinese investors were fettered by the FIRB.

"Why should the average American, regardless of his education or qualifications, have the right to invest 950 million Australian dollars ($817m) in Australia but the average Chinese person, regardless of how much money he has, is not allowed to invest without our treasurer saying so?" he said.

Canberra has been negotiating a free trade deal with Beijing for years but little progress has been made.

Last week the FIRB said China and other foreign investors in Australian mining companies would be limited to a 15% stake. As well as a 15% cap on the foreign share in established companies there would be a ceiling of 50% in start-ups.

In the same week, Chinese Ambassador Zhang Junsai denied that China was out to buy up mineral resources in order to secure supplies and put downward pressure on prices.

"When investing in Australia, Chinese companies, state-owned or private, look for healthy, long-term and reliable partnerships instead of control or monopoly," Zhang said.

"I also hope that Australia will treat Chinese companies in a way that is fair and just and facilitate their investment here as we do our Australian friends."

- Dpa

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