Advertisement

Hard feelings over China's Oakajee rebuff

One of the world's most powerful bankers, the chairman of China's Import-Export Bank, has reopened the Oakajee wound, declaring that if his country had been awarded the WA Government rights to the crucial Mid West iron ore infrastructure, it would have been built "a long time ago".

Speaking on the sidelines of the Boao Forum for Asia conference, Li Ruogu also said the environment in Australia for Chinese investment "could be better", in a pointed remark about relations with Australia's most important trading partner.

Mr Li is co-chair with Fortescue Metals Group founder Andrew Forrest of the China-Australia Senior Business Leaders Forum at Boao. Members include Woodside Petroleum chairman Michael Chaney, Qantas chief executive Alan Joyce, Macquarie Group boss Nicholas Moore, ANZ managing director Mike Smith and transport billionaire Lindsay Fox.

The business leaders' forum is designed to strengthen ties between Australia and China amid widespread feeling that the relationship is not advancing and perhaps floundering. The business leaders expressed their views to Prime Minister Julia Gillard yesterday.

Mr Li's comments on Oakajee illustrate the simmering tensions between China and Japan, which has the rights to build a railway to and port at Oakajee, north of Geraldton, and also the Middle Kingdom's lingering resentment with the WA Government.

"On a number of occasions investment in some mines, because there has been no railways, no port - the investment has been a waste," Mr Li said.

"It has already been four, five years but the railway has not been constructed."