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Foreign direct investment and the role of China: a comparative study of Australian and Brazilian domestic and international responses

Abstract

The aim of the cooperation project is to encourage a comparative study of the legal arrangements, both national and international, of Australia and Brazil in response to recent changes in the international regim of foreign direct investment (FDI) and its international competitiveness. Trade and investment relations between Australia and Brazil are small, but the interesting part for the project is the comparison between these two countries that are of economies of medium size, both recipients and exporters of increasing amounts of FDI and with similar challenges in FDI originating from China (in their respective territories and in third countries). The Chinese FDI has challenged both the Brazilian national rules as well the Australian ones, especially in the extractivist industries, real estate and infrastructure. At the international level, the challenges are arising from competitiveness to the Chinese capital in third countries, as is the case of Angola, as well as regulatory convergence in the recently launched free trade mega-deals (such as the "Trans-Pacific parternship" and the "Regional Comprehensive Economic parternship"). The point of interest for the comparison and collaboration is that Australia and Brazil traditionally took the opposite positions on the national and international regulation of FDI - Australia, as a liberal country, and Brazil, protectionist one - but actually started to present similar proposals to review the FDI regulation. (AU)