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It has been nearly three years since the implementation of the China-Australia Free Trade Agreement. The Chinese investment in Australia has become more diverse. In addition to the traditional investments in real estate, mines, and natural resources, Chinese investors have shown significant interest in agriculture. The increased investment in agriculture provides a wealth of benefits for both countries. On the one hand, agricultural investment is critical for the future development of farming and agricultural economy in Australia. On the other hand, it substantially improves the Chinese consumers’ access to high quality Australian agricultural products. China’s growing agricultural investment in Australia is predominantly determined by two factors. From an economic perspective, China’s huge market demand for high quality agricultural products and Australian agriculture’s comparative advantages have made them well-matched partners. From a legal perspective, the implementation of the ChAFTA and the regulatory reforms made by both countries have created a positive investment environment. At present, the collaboration in the agricultural sector has been quite successful. In the meantime, agricultural investment also faces a range of challenges. Commercial diplomacy and political risks are some of the major concerns. Moreover, the potential negative impact of larger-scale agricultural investments on the environment and food security also worries the local communities. Nevertheless, both the Chinese government and the Australian government have demonstrated a strong will to collaborate. They are capable of overcoming any difficulties and challenges that they may come across in the future. This article predicts a promising future for the Chinese agricultural investment in Australia. |
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