business

Australia blocks Kirin's $430 mil sale of dairy business to Chinese company

42 Comments
By ROD McGUIRK

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42 Comments
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Good for Australians. Who knows what bat juice they'd put in your milk.

32 ( +37 / -5 )

Yup, as I said previously, first Phase was to Contaminate the opposition,

Phase II is contaminate food supplies and Agricultural Production.

Phase III, break down Logistical Infrastructure...sit back and wait.

11 ( +16 / -5 )

It would have been better to sell first and later ignore the products. That is how you play with China.

-8 ( +2 / -10 )

Who’s going to ignore the products?! I guarantee that 90% of the people who would buy this product would have no idea that it was owned by a foreign company!!

Dairy Farmers brands looks and sounds local. You can’t expect an entire population to suddenly boycott a product!

17 ( +19 / -2 )

It would have been better to sell first and later ignore the products. That is how you play with China.

Problem is its pretty hard to ignore the products when they are the most popular and famous Australian brands.

To be honest, Im uneasy about the fact most of Australias dairy and beer industry is already controlled and owned by foreign interests. That the Australian government has allowed this to happen over the last 10-20 years is arguably against the national interest.

20 ( +21 / -1 )

Yup, as I said previously, first Phase was to Contaminate the opposition,

Phase II is contaminate food supplies and Agricultural Production.

Phase III, break down Logistical Infrastructure...sit back and wait.

@WA4TKG funny you should say that. Have you heard about these mysterious packages containing non native seeds appearing in Letterboxes across Ausralia?

https://www.businessinsider.com.au/residents-across-the-country-report-mystery-seed-packages-in-mailboxes-2020-7

13 ( +14 / -1 )

Excellent news.

13 ( +17 / -4 )

That the Australian government has allowed this to happen over the last 10-20 years is arguably against the national interest.

All the more reason to vote for a party which will NOT allow any more of this - One Nation.

-7 ( +7 / -14 )

I am a european and for this once, impressed by Australia for taking the fight to China. Well done.

can not trust China under Xi and never with foodstuffs or medicine. Remember all mainland Chinese buying milk formula and medicines in Hongkong and Japan because they don’t trust their own companies and government

20 ( +21 / -1 )

BennyBmg: Yes, which is why I mentioned what I did.

3 ( +4 / -1 )

Australia is putting everything on the line here folks. The opposite of expediency. It’s what integrity looks like.

To the Rest of the World.

Feel free to find some yourselves

onyaz

Aussie

14 ( +16 / -2 )

This is good. Australia is literally being targeted by China in every which way besides an actual war battle! Keep this up Australia! You have my support from the USA!

12 ( +16 / -4 )

Trade wars are so much fun!

2 ( +6 / -4 )

Good! Stick it to China any way you can!

10 ( +12 / -2 )

BennyBmg: Yes, me too. And the seed packets are still arriving.

https://www.abc.net.au/news/2020-08-26/australians-warned-to-be-on-look-out-for-mystery-seeds/12592348

4 ( +4 / -0 )

To be honest, Im uneasy about the fact most of Australias dairy and beer industry is already controlled and owned by foreign interests. That the Australian government has allowed this to happen over the last 10-20 years is arguably against the national interest.

Autarky didn't work very well for India and Brazil. There is a balance to be sought between keeping foreign interests out and having a prosperous economy. The foreign owners can't take the farms and ranches with them to China. They are taking their chances that their investment will be returned with interest. For countries with smaller populations and GDPs it can be tough to survive solely on domestic investments. Lacking outside cash plant and equipment can fall behind the global best. That is what usually happens when small to medium economies try to go it alone. Often foreign investors bring in fresh ideas and technologies that are new to the place they invest in. A good example for Australia is the defense sector. There is no way without lots of outside help Australia can make the various weapons it needs to defend itself. This is true to a lesser degree for many industries operating in countries like Australia. Sometimes if foreign investors didn't bring in the latest tech it would not happen. But like I said, there has to be a sensible balance. Maybe you don't let the Chinese invest in some sectors because they genuinely do represent a grave threat but locking every nation out might end up being counter productive.

1 ( +3 / -2 )

Who’s going to ignore the products?! I guarantee that 90% of the people who would buy this product would have no idea that it was owned by a foreign company!!

I doubt many Americans know that Burger King (Hungry Jack to you Aussies) and Holiday in are British owned. Most Americans assume they are American companies. Companies are bought and sold constantly. It's tough to keep up with who owns what.

7 ( +8 / -1 )

Great decision ever made to protect the children. We all remember the Chinese baby formula controversy in China and Japan.

9 ( +10 / -1 )

The Chinese need to stay the hell away from food and drink production. Any government allowing Chinese ownership of assets in a nation's food and beverage industry is guilty of treason and not looking after the health and safety of its citizens.

8 ( +10 / -2 )

Meanwhile, Japan's largest paint and coating corporation had officially sold itself to a Singaporean Chinese who has close ties with the CCP.

https://www.straitstimes.com/business/companies-markets/singapores-wuthelam-group-to-buy-out-nippon-paint-for-166-billion

This article reveals to us that there has been a trend of Japanese firms selling their assets to the Chinese. I was quite stunned to learn that ARM jv operation in China is now mostly owned by the Chinese military. I am aware that Japan Inc has been in heavy decline, and they desperately need cashes. If Japanese firms are willing to sell themselves to or collaborate with the CCP, I bet Trump's wrath will turn upon Japan next.

7 ( +8 / -1 )

This is good to see but with a caveat: I don't know why it took Frydenberg so long to knock the deal on the head. Actually, I do. This deal started back in November, and likely would have gone ahead if this corona crisis hasn't reared its head.

The government is only reacting to anti-CCP public sentiment, and without the CCP's even worse behaviour than usual, Frydenberg, Morrison et al would have rolled over and let the deal go through, hoping nobody would notice. Both Liberal and Labor governments have facilitated the expanding foreign ownership of Australia's primary sector - especially the agricultural sector to Chinese interests with close ties to the CCP. These politicians are about political expediency above all, and don't give a hoot about the people they're supposed to serve unless it threatens their interests.

So while this is a positive move, it's more the exception than the rule. The moment our backs are turned, the politicians will thrust the knife in.

9 ( +9 / -0 )

@ kryonstavic

Nailed it perfectly. Don't be praising politicians who've allowed this to go on for years.

6 ( +6 / -0 )

Good on Australia!

The world needs to have these checks in place & we need to keep China OUT as much as possible, China has shown its hand in plain sight now for 20years, I have seen it for about 35yrs now.

We need to dis-invest from China & keep China OUT of our markets. Until the govt of China collapses & something better emerges there they have CLEARLY show to us they are our enemy economically & perhaps even more than that!!

Stop feeding the MONSTER!! Again good on Australia!!!

11 ( +13 / -2 )

Stop all trade with China !

They cannot be trusted !

They are not your Friend !

12 ( +15 / -3 )

It’s good to see an Aussie politician saying no to the Chinese. Now, if we can just stop the Australian federal government selling off huge expanses of farmlands and water resources to the Chinese we might actually make headway.

10 ( +12 / -2 )

India has also cancelled many Chinese funded projects,Time to tell China that enough is enough

8 ( +10 / -2 )

Well Done !

2 ( +2 / -0 )

China is VERY unpopular in Australia right now. I'm not surprised by this

4 ( +5 / -1 )

Treasurer Josh Frydenberg: "I have concluded that this treaty is not in the best interests of my country".

(The line from the 2003 Tom Cruise film fitted perfectly).

-1 ( +1 / -2 )

Thank God! Why on Earth would they ever even allow that? Crazy, just crazy!

0 ( +3 / -3 )

Thank God! Why on Earth would they ever even allow that? Crazy, just crazy

It’s called free market capitalism.

0 ( +2 / -2 )

In yesterday's news US and China discussed the implementation of the first phase of their trade agreement.

The goal is to increase trade with China, not less. Balanced trade in particular.

0 ( +0 / -0 )

It’s called free market capitalism.

....ok...but China does NOT practice that IN China, so other countries should not be so open with China, especially with China so openly hostile to so many countries!!!

4 ( +4 / -0 )

BennyBmg, weren’t they coming to Japan too recently?

0 ( +0 / -0 )

Christopher Glen, where IS China popular today? Even the Kenyan gov’t has stopped a chinese project.

3 ( +3 / -0 )

Something the Aussies may want to think about: as long as the milk production facilities are not physically removed from Australia, and as long as Australians work there, what difference does it make who owns the facilities? I assume that the laws governing the operation of the plants will remain in force, no matter who owns the facilities.

2 ( +4 / -2 )

It’s too late. Pleading stop buying China is like saying stop using cars.

There are nearly 3,000 Belt and Road projects underway with a combined value of around US$4 trillion and involving 2,630 companies. It’s continuing to push ahead unless you can convince Iran, Pakistan, and Russia all to oppose China.

-1 ( +1 / -2 )

It’s good to see an Aussie politician saying no to the Chinese. Now, if we can just stop the Australian federal government selling off huge expanses of farmlands and water resources to the Chinese we might actually make headway

Why? The Chinese can't take the farm land back to China with them. Anything they produce is counted in the Australian GDP. They will hire Australians and pay taxes on the land and its produce. If you assume your own farmers and business people are somehow more honest and less likely to cut corners than the Chinese you are delusional. You will devote as much effort regulating an Australian owner as you will spend on a Chinese owner. If they are exporting milk and creating a shortage in Australia that might be a concern, but that could happen regardless if the Chinese were willing to pay more for milk than Australians. Under a situation like that Australian farmers would sell to whomever wants to pay the most. Would you blame them? It still goes on your GDP and not on China's.

/

-2 ( +1 / -3 )

My Wife and I have boycotted all Chinese Products from 2020 too!

It’s high time to re- think our Global stance on China!

3 ( +3 / -0 )

As an example of how things can change while remaining largely the same:

Volvo was established in Sweden in 1927. They were owned by Swedes until 1999.

In 1999, Ford purchased Volvo. Most of the employees remained in Sweden.

In 2010, Ford sold Volvo to a Chinese company, which still owns Volvo. Most of the Volvo employees still live in Sweden, the headquarters are in Sweden, even though the ownership is Chinese.

The example of Volvo has been repeated many times around the world. Companies with a large stash of capital will use their cash to purchase other companies. As conditions change, the companies are sold again to raise capital, to other companies who have large amounts of capital. As long as the brick-and-mortar plant remains in place, and as long as the employees remain in place, and as long as the company is subject to the rules, regulations, and laws of the country in which they are domiciled, what is the harm, other than to the ego?

0 ( +1 / -1 )

KIRIN group is making some morally inept decisions these days-Myanmar beer production is another

1 ( +1 / -0 )

talaraedokkoAug. 26 08:19 pm JST

Christopher Glen, where IS China popular today? Even the Kenyan gov’t has stopped a chinese project.

Yup, the $12million (RM200 million) Sigiri Bridge in Busia County, Kenya, COLLAPSED even before it was finished. It was built by the china-nese.

0 ( +0 / -0 )

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