AUSTRALIANS don't mind Chinese investment in our infrastructure and technology industries, or in the retail, leisure or finance sectors, but more than 40 per cent are quite concerned about China's ambitions to own our farmland or farm industry businesses.
A national survey has found 41pc of the general public are "very or moderately concerned" with Chinese investment in "agriculture and farming".
Only 15pc had no concerns.
That's in stark contrast to the 30pc of respondents who had no concerns about Chinese investment levels in the education, technology, automotive, leisure and retail sectors.
The public opinion survey found China's interest in agriculture and real estate to be special cases for concern in the minds of Australians, even though total Chinese spending in our farm sector actually slipped slightly last year.
Hot on the heels of the federal government declaring the planned sale of the 10.1 million-hectare S. Kidman and Co cattle business to foreign investors was not in Australia's national interest, the latest Daymark Community Monitor of more than 1500 people found perceptions about levels of Chinese Foreign Direct Investment (FDI) were generally more exaggerated than reality, particularly in relation to agriculture.
Agriculture represented just 1pc of the $64.5 billion FDI by Chinese in 2014, according to the most recent data from the University of Sydney and professional services company KPMG.
Public perceptions about the Chinese' attraction to Australian real estate were, however, more realistic, with commercial property accounting for 46pc of total China's investments last year.
Community unease about commercial real estate ownership by Chinese investors was at similar levels to agriculture, with only one third of those surveyed thinking the China's activity was positive.
"People generally understand the need for foreign investment and the advantages it can deliver, but sentiment changes once they talk about China, and it changes significantly when we talk about agriculture and China," said Daymark's Brisbane-based associate director, Andrew McConville.
"The survey confirmed what we're hearing about investment from China - it's a special case which requires attention if we are to really capture the benefits it can bring.
"This is particularly the case in sectors like agriculture where money is badly needed to fund growth."
Daymark, an issues reputation management consultancy, found respondents readily accepted the benefits provided by foreign investment including 21pc perceiving FDI helped economic growth; 14pc believed it increased employment, and 13pc accepted it provided new new markets opportunities and built trade connections.
Australia attracted more than $2.78 trillion in foreign investment last year, with the US accounting for 27pc of that FDI.
The UK (17pc), Belgium (8pc) and Japan (6pc) were also well ahead of China, our seventh biggest foreign investor which contributed 2pc of FDI in 2014.
Mr McConville said many high profile agricultural sector and city property market sales, or talk of Chinese investment intentions in dairy and irrigation ventures, had probably helped convince nearly half those surveyed this month that overseas investment from China had significantly increased in the past five years.
He confirmed Chinese investment was up, "but from a very low base".
Investment from the UK, the US, and New Zealand was also up in the same period, yet these countries were strongly perceived by the general public to have generally not changed investment levels here, or possible even reduced them.
With agricultural products in strong demand and outside funds needed to boost Australia's export capacity, much more had to be done to tell the real Chinese story.
More groundwork was required to engage the community early before people had the chance to misinterpret any potential agricultural acquisitions by Chinese investors.
"It should be part of any potential seller or buyer's due diligence to engage with the community and other stakeholders, including local councils and state or federal governments, and understand any concerns," Mr McConville said.
Long-term investment plans
In Andrew McConville's experience, after working in Asia for the past decade, Chinese buyers do not have aggressive investment plans for Australian agriculture.
The tended to be "quite passive, long-term and strategic" players.
"Investing in Australia's food and agriculture industry won't be the answer to their food security, but we do have skills and experience which can be learnt and transferred back to China or elsewhere," said the Daymark associate director and former Singapore-based corporate affairs boss with a global agribusiness.
"Australia could be making huge potential gains from developing its exports of ag sector knowledge and technology.
"If the community fully understands the benefits foreign investment can bring, in many ways you'll create a valuable third party advocate for these investment deals."
However, the Daymark community opinion survey did highlight concerns about loss of Australian profits overseas, risks to local employment and local ownership and the transparency of foreign investor activities rated as concerns for up to 70pc of respondents, with 10pc to 15pc specifically concerned about those issues with Chinese investors.
