ANZ Chief Rejects Abbott’s Push for Scrutiny on Foreign Investments

Mike Smith, the chief executive of ANZ, has rejected Tony Abbott’s push to have tougher rules on Chinese state-owned investments in Australia. Smith said that politicians should refrain from pandering on public opinion.

According to Smith, Abbott was obviously referring to China as the latter used the term “state-owned institution.” Speaking before a business breakfast yesterday, Smith said Abbott is targeting China with his remarks.

ANZ has heavily invested in Asia. The chief executive said he has no problems with Chinese businesses that use Australia to get raw materials.

And while Smith understands that national interest should be considered, he said that issues should be based on defense rather than commercial concerns. He added that he is not hung up on the matter.

The ANZ chief said the country is in an ideal position to attract more Chinese investments, thanks the Australia’s political and legal stability. The country also has rich natural resources.

Smith said that based on a Lowy Institute survey, two-thirds of Aussies realize that it is important the country is seen in a positive light by other countries within the region.  He added that only 16 percent of the respondents said they believed that the country should have more efforts to attract more investments from the rest of Asia.

Abbott has encouraged the Coalition government to scrutinize foreign investments in the country, zeroing in on state-owned enterprises.