China Specialist, Duncan Calder, advises Australian Companies

1
China specialist, Duncan Calder, advises
Australian companies to Go To Africa to seize the
benefits of China's massive Belt and Road
Initiative
China specialist, Duncan Calder, advises
Australian companies to "Go To Africa" to seize
the benefits of China's massive Belt and Road
Initiative - The mammoth Belt and Road
Initiative, (the BRI), is the Project of the
Century and the flagship economic policy of
Chinese President Xi Jinping, revitalising the
Old Silk Road with strategic investment in
massive economic infrastructure
2
Projects to deepen regional cooperation and
improve connectivity across the globe. Duncan
Calder, respected China commentator and former
National President of the Australia China
Business Council (ACBC), claims that It is a
great economic tragedy that Australian companies
are missing out on participating fully in the
biggest game in town. The very scale of the BRI
in which up to AUD 10 trillion of expenditure
is expected means that some Australian
resources companies, such as the major iron ore
producers, will benefit as suppliers but sadly
many Australian businesses will miss out. When
Premier Li Keqiang invited Australia to join the
BRI party, the Federal Government, unlike more
astute neighbour New Zealand, opted not to do so.
Failing to get us a seat at the table of the
biggest global infrastructure play of our time
the unifying Belt and Road Initiative is an
economic miscalculation of epic proportions says
Calder. 
3
Calder, who founded KPMG Australias China
Business practice at the turn of the millennium,
notes that this failure by Government has already
had negative consequences that extend beyond the
lost infrastructure opportunities under BRI, as
reflected in the huge reduction in Chinese
investment into Australia, which fell by a
massive 40 last year. This is a sad, but
entirely predictable, consequence of the failures
of our Federal Government in recent times to
fully respect and nurture Australias
historically mutually beneficial win-win
relationship with China, our largest customer,
Calder continued. Australia must not continue to
be a knee jerk partner of US foreign policy.
Australia should remember that the USA is driven
ONLY by US interests, not by those of its allies.
We shouldnt be too naïve about the motivations
of the USA and the dumbed down rationale it
presents for the trade war, which is, in truth,
about US hegemony.
4
Professor Gareth Evans, former foreign minister
of Australia, commented recently in a keynote
address to Chinese Community Council of Australia
that We should recognise the essential
legitimacy of the scale and ambition of the Belt
and Road Initiative.  I couldnt agree more.
  We here in Australia need, as a country, to
protect our interests and to respect the massive
contribution being made every day by China (and
Chinese Australians) to our economy and to the
lifestyles of Australian families as well as
recognising Chinas emerging status as a rule
maker in international relations. Sometimes our
interests will involve backing the United States,
but sometimes Australia needs to follow its own
path.  Especially when the cost of not doing so
is so huge. Businesses cant wait for Federal
Government ministers who clearly are not
performing well in managing the critical
relationship with China. Australian businesses
need to engage directly.
5
Businesses cant wait for Federal Government
ministers who clearly are not performing well in
managing the critical relationship with China.
Australian businesses need to engage directly
with China to bring game changing infrastructure
opportunities to Australia and to Australian
companies. Whilst it is imperative to continue
to seek Chinese collaboration in major strategic
infrastructure projects in Australia, such as the
dream of successive Western Australian
governments over decades to develop a deep water
port at Oakajee and to open up the MidWest Region
of the state, this is more challenging than it
need be because of the positions adopted by the
Federal Government. A better short term strategy
for many Australian companies to access the
mouth-watering opportunities being created by BRI
may be to look to collaborate with Chinese
companies in developing projects elsewhere around
the globe particularly in Africa.
6
Calder, Managing Director of advisory house
Contour Capital, sees massive benefits for
Australian companies in collaborating with China
to develop resources projects in Africa
Australians have a great reputation throughout
Africa built on our strengths in developing
opportunities, exploring effectively and using
our geological and engineering skills to create
exciting projects. However, investments in
Africa dont come without challenges So a
partner who can deliver political strength to
protect investments, a partner who can deliver
construction power and expertise with massive,
low-cost labour supply, and a partner who can
provide financial strength and access to both
equity and low-cost large debt capital is very
welcome. And China is the perfect partner.
China brings to the table Political Muscle,
Construction Muscle and Financial Muscle.
7
Africa, as a whole, has close to 1 billion
people not that much less than China at around
1.3 billion people. Importantly, however,
demographics work in Africas favour, and
currently has more than 500 million people of
working age and by 2040 will have the worlds
largest working-age population. We may be in
the century of the East, but this century also
promises much for Africa. But, it is still
enormously challenging and wretched poverty still
covers half the continent. Australian companies
bring energy, creativity, geological and
engineering know-how into Africa. Australian
companies have been in Africa for many years and
have shown they can act transparently as good
corporate and environmentally responsible
citizens. But many are junior companies, living
on their wits and exposed to the risks of project
development in Africa.
8
China can deliver the funding to develop the
mines and associated port and rail and power
infrastructure, often on attractive terms,
especially where China sees the opportunity to
secure supply of important commodities and to
sell its engineering capability under the BRI
banner. A small Australian resources company
looking to develop a project in Africa can be
vulnerable to sovereign risk and even project
expropriation. But if that same company is
operating in joint venture or in collaboration
with a Chinese SOE, then those risks are
significantly reduced. It is perhaps not
surprising that a company such as AustSino
Resources Group Limited, that is looking to raise
Chinese capital to develop infrastructure at
Oakajee in the Mid West of Western Australia is
alert to the current tensions in Sino-Australian
geopolitical relationships and has now opted,
simultaneously, to look to acquire control of
Sundance Resources which needs Chinese partners
to develop its exciting Mbalam iron ore project
in Cameroon.
9
Duncan Calder, based in the massive resource-rich
province of Western Australia, sees that the role
of Sino-Australian advisors, like Contour
Capital, is to help Australia and Australian
resources companies to play a larger role seizing
the BRI opportunity both within Australia as well
as in Africa.
Media ContactCompany Name Contour
CapitalContact Person Duncan CalderEmail Send
EmailPhone 61 439 299 817Country Australia
Sources   http//www.nbc29.com/story/39346289/chi
na-specialist-duncan-calder-advises-australian-com
panies-to-go-to-africa-to-seize-the-benefits-of-ch
inas-massive-belt-and-road-initiative
10
Source Link http//www.nbc29.com/story/39346289/c
hina-specialist-duncan-calder-advises-australian-c
ompanies-to-go-to-africa-to-seize-the-benefits-of-
chinas-massive-belt-and-road-initiative Thanks
for Watching Duncan Calder PO Box 1431, South
Perth WA 6951 duncan.calder_at_manna.org.au https//w
ww.manna.org.au/