On Wednesday, Treasurer, the Hon Josh Frydenberg MP, announced his intention to block a Hong-Kong based company’s $13 billion bid for the proposed acquisition of the largest gas transmission owner in Australia, APA Group on the basis that it is not in the national interest.
In his first public case of foreign investment guidance since his appointment as Treasurer, Mr Frydenberg cited that the acquisition would result in a concentration of foreign ownership for a single company group in one of Australia’s most significant infrastructure services. He also raised concerns about the likelihood of intervention in the company from Beijing.
This move closely follows the Government’s decision to prevent Chinese companies Huawei and ZTE from involvement in the rollout of Australia’s 5G network.
The Prime Minister, the Hon Scott Morrison MP, announced a new package of security, economic and diplomatic initiatives to build on partnerships in the region on Thursday. The package will involve the establishment of a $2 billion fund for infrastructure development in the Pacific and Timor-Leste.
It is a clear means of enhancing Australian soft power in the Asia-Pacific, in order to counter growing Chinese influence in the region.
The Prime Minister commented that the funding is ‘part of a larger vision of Australia as a force for good in the Pacific, working with others to ensure our region is secure, stable and sovereign’.
‘If Australian standing and influence in the Pacific is to grow, our commitment must be genuine, authentic and enduring’.
Leader of the Opposition, the Hon Bill Shorten MP, commented that ‘Labor welcomes the government’s long overdue recognition of the importance of the Pacific’, but called for the measures to be complemented with an effective climate change policy.
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