Slower global growth and political uncertainty slowed foreign direct investment around the globe in 2018 and also affected Chinese investment into Australia
. In the past, a major influx of Chinese investment has raised questions about whether Australia was relying too heavily on its main partner in Asia.
2018 actually saw the third lowest outward direct investment numbers by China since 2007, according to a KPMG and University of Sydney report.
In the boom year of 2008, major deals in the fields of mining and natural gas drove up numbers. Since 2016, Chinese investment into Australia has been declining, which is also connected to a change in Chinese investment strategy away from large-scale resources and energy deals towards investments into sectors relevant to the developing Chinese consumer market. In the case of Australia, this translated into deals targeting the health care sector.
Yet, the ongoing trade war with the U.S. could intensify Chinese interest in Australia again. In January, 21 percent of Chinese CEOs named Australia as a growth destination for 2019, making it the top 1 country in the listing by PwC.