BEIJING—China aspires to play a greater role in Australia's economy, one of the country's top leaders said Tuesday, signaling Beijing's aspirations for its companies to make inroads beyond simply extracting resources.
Speaking alongside Australian Prime Minister Julia Gillard at an Australia-China business forum in Beijing, Vice Premier Li Keqiang said Chinese companies could play an important role in the construction of Australian infrastructure, and that energy and resource cooperation between the two countries needs to go beyond "buying and selling" and involve more research and development, and investment.
China's state-owned firms have been expanding aggressively overseas in recent years, snapping up mining and energy resources around the globe to help fuel the country's breakneck economic growth.
Its construction companies and equipment manufacturers also have built up a presence overseas, predominantly in developing countries where, backed by cheap funding from Chinese banks, they are building much needed infrastructure in record time.
China now appears to be eyeing developed markets, where many countries also urgently need new infrastructure, but where the quality of Chinese workmanship is often regarded as suspect.
"We would encourage capable and responsible Chinese companies to take part in Australia's" construction sector, said Mr. Li, seemingly addressing such concerns. He said areas where Chinese concerns could play a role include port and rail construction, the Australian government's planned rollout of a national broadband network and postdisaster reconstruction. Australia suffered major cyclone and flood damage earlier this year.
Australia also is in dire need of key transport infrastructure, with the existing network unable to cope with the rapid increase in export demand for the country's mineral resources.
In the 2010 financial year, Australia exported 46.55 billion Australian dollars (US$48.6 billion) of goods to China, more than nine times the amount a decade ago. Iron ore makes up more than half of that figure and is up more than 25 times in the decade.
Ms. Gillard said she discussed infrastructure development in Australia during her meeting with Chinese Premier Wen Jiabao earlierin the day.
Chinese construction firms have already started testing the waters in developed economies. Huawei Technologies Co. and ZTE Corp., China's flagship telecommunication-hardware companies, have blazed a trail, with Huawei already having a significant presence in Australia.
Still, overseas investment hasn't always been smooth sailing. U.S. concerns about Huawei's military background and opaque corporate governance have made it difficult to break into that market. In Australia, domestic political opposition to a wave of Chinese investment emerged in 2009. Australians remain uneasy, with a poll by the Sydney-based Lowy Institute for International Policy showing 57% of respondents think the government has been allowing too much Chinese investment into the country.
In his speech, Mr. Li. called for an "open and nondiscriminatory [policy] for all China's companies investing in Australia, including state-owned enterprises."
Despite Australia's need for infrastructure, China's involvement in the sector may still face some roadblocks. Chinese construction companies operating in the developing world often bring in their own labor, causing tension in the local communities in which they operate.
Speaking earlier in the day at the same forum, Shen Heting, vice president of China Metallurgical Group Corp., one of the country's major mining companies, said he would like it to be easier for skilled Chinese workers in the construction sector to be granted visas to work in Australia.
"I'd like to call on the Australian government to reverse the English requirement for skilled workers from China," he said.
Mr. Shen said that Western Australia's Pilbara region, the epicenter of Australia's iron-ore boom is in dire need of labor, and Chinese workers would require less than the high wages being offered to attract employees to one of Australia'remote areas.
Asked whether Australia would contemplate making it easier for Chinese workers to go to Australia, Ms. Gillard said on Wednesday "I think we've got the visa settings right." She added: "We will never countenance people coming to work in Australia and being paid less than Australian terms and conditions."
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