The Australian government has quietly approved the participation of China's Baowu Iron and Steel Group in a A$2 billion (A$1 is about RMB4.72 - this website notes) iron ore project in Western Australia, the largest Chinese investment approved in Canberra since 2019, The Australian reported on its website on 18 February.

　　It was disclosed that Australia's Foreign Investment Review Board recently approved a joint venture between the Chinese state-owned steel giant and Rio Tinto Mining Group.

　　A spokesperson for the Australian Treasury Department reportedly said the Albanese government would not comment on the decision. The spokesman said, "The Australian government reviews foreign investment proposals on a case-by-case basis to ensure that the proposals are not contrary to the national interest."

　　He added: "We do not comment on the applicability of the assessment arrangements as they apply or may apply in particular cases."

　　According to sources familiar with the matter, the foreign investment regulator has given its approval. The decision sends a clear signal to Chinese investors that large projects in Australia can still be approved if they are undertaken with local partners. Baowu Group holds a 46 per cent stake in the project, while Rio Tinto Group has a 54 per cent stake.

　　The report said it was the largest Chinese investment approved in Australia since China's Mengniu Dairy bought infant formula maker Bellamy Organics for A$1.5 billion.

　　Chinese diplomats in Australia have complained for years that the Turnbull and Morrison governments have tightened foreign investment rules and restricted Chinese investment in key infrastructure, the report said.

　　Then-Treasury Minister Josh Frydenberg first blocked CKI Group Ltd's A$13 billion acquisition of APA Group, a pipeline construction company, in 2018, then blocked Mengniu Dairy Co's acquisition of Lion Dairy and Beverages in 2020, and blocked China State Construction Engineering Corporation's acquisition of a construction company in 2021. Beijing is furious with these moves by the Australian side.

　　The Chinese Ministry of Commerce (MOFCOM) reiterated its call on the Australian side to provide a good business environment on 16 June, the report said. "It is entirely possible to find mutually beneficial and win-win solutions through dialogue and communication," Commerce Ministry spokesperson Shuang Jue Ting said.

　　News of the investment approval will provide a boost to Australian companies focused on doing business with China, which are keen to gain access to the world's second-largest economy, the report said.

　　The news of the investment approval comes on the eve of Australian Trade and Tourism Minister Don Farrell's trip to China to meet with Chinese Commerce Minister Wang Wentao.

　　Australian and Chinese officials are preparing for a meeting in the near future and preparations for the visit are still underway.