Chinese Investment in Australia : A Critical Analysis of the China - Australia Free Trade Agreement

The China–Australia Free Trade Agreement (‘ChAFTA') reflects the latest development of trade and investment rules in regional economic integration and is of significance to the future development of the international economic legal order. Through a critical analysis of the major ChAFTA rules on investment protection and liberalization, this article argues that the positive impact of these rules on Chinese investment in Australia has been overstated. These rules, as they currently stand, may not create sufficient incentives for or boost the confidence of Chinese investors. Chinese investment in Australia will continue to be influenced by the investment policies and needs of China as a capital exporter and Australia as a capital importer. However, the recent agreement of the two governments to commence the review of these rules in 2017 shows their commitment to further developing these rules to achieve a higher level of investment protection and liberalisation