China backs free trade plan
Premier Li Keqiang has thrown his political might behind China striking a free trade agreement with Australia by the year's end.
Mr Li is believed to have embraced the FTA deadline in a meeting with Prime Minister Tony Abbott on the sidelines of the Boao Forum in Sanya.
The prospect of the China-Australia FTA being completed came as Mr Abbott praised Mr Li for his economic reforms, saying China had "taken to heart Deng Xiaoping's advice that 'to get rich is glorious'".
"To be rich is indeed glorious - but to be a true friend is sublime," the PM told the forum yesterday. "Australia is not in China to do a deal but to be a friend. We don't just visit because we need to but because we want to."
Mr Abbott flew to Shanghai last night for Australia Week, which has attracted almost 700 Australian business delegates and every premier.
If the China-Australia FTA is achieved, the Abbott Government will have secured FTAs with three of its four biggest export markets, including Japan and South Korea.
Beijing wants Australia's foreign investment rules changed in how they apply to state-owned Chinese companies buying Australian assets.
Although Beijing is unlikely to get its preferred option - a lifting of the Foreign Investment Review Board threshold to $1 billion - it has been offered some significant concessions.
As reported in _The West Australian _yesterday, these would include removing the zero threshold for FIRB scrutiny in cases where Chinese-controlled companies invested in greenfields projects that would otherwise go undeveloped.
State-owned Chinese companies that already have sizable investment profiles in Australia stand to get preferential treatment. These investments would likely only face FIRB scrutiny for investments above the trigger for non-government foreign investment, currently $248 million.
Tighter controls on agribusinesses and agricultural land would remain.
In return, Australia wants access to China's lucrative services sector and major concessions on dairy exports.
