Global Times, a tabloid newspaper under the auspices of the Chinese Communist Party, Qin Sheng from the Chinese Academy of Social Sciences compares Australia and New Zealand s approach to China. Australia and New Zealand are very much alike in many ways, he writes, noting how both countries have similar histories, host large numbers of immigrants, are members of the intelligence-sharing Five Eyes alliance, and are reliant on foreign trade. But what has caused such a huge difference between Australia and New Zealand in their development of relations with China in recent years? Sheng asks. First, New Zealand respects rules of the market economy more than Australia does, he writes, criticising Australia s Security of Critical Infrastructure Act 2018, which China complains has led to a sharp decline of Chinese investment.
Australia introduced the
Foreign Acquisitions and Takeovers Act 1975 (Cth) to regulate the acquisition of land and assets in Australia, by foreign persons or entities. It imposed reporting obligations on foreign persons and entities engaging in transactions, and provided the Federal Government extensive powers to monitor and intervene in transactions involving foreign persons.
From 1 January 2021, the following laws have come into force which have amended the current Foreign Investment Review Board (
FIRB) regime:
Foreign Investment Reform (Protecting Australia s National Security) Regulations 2020 (Cth).
National Security Business and National Security Land
The biggest change is to the acquisition of land and businesses deemed to be in the national interest. The reforms require mandatory notification of: