"Shouldn't it have been your job to keep this man in the country?" asks Juergen Corleis, freelance correspondent for Germany's Axel Sprigner Group. He is referring to Australian citizen Dr Shi Zhengrong, who is today China's first billionaire. He conducted his PhD research from the University of New South Wales, but returned to the land of his forefathers in 2001 to establish Suntech Power Co. Ltd., a company that makes photovoltaic cells for use in solar panels. His enterprise, with 2500 employees is one of the most impressive ventures in modern China.

Corleis is addressing Garry Draffin, General Manager of Invest Australia, the federal government's inward investment agency geared to promote Australia as a destination for global investors. Invest Australia recently hosted a special media briefing for 16 FCA members at The Establishment in Sydney.

Draffin's volley to Corleis' question is elegant. "It is always easy to pick the winners in hindsight", he muses. "And doesn't it help Australia to be one of the favoured providers of international education for bright people from all over Asia - even if a lot of the students start their careers in their home countries? Of course it helps - the alumni network of our universities is invaluable."

But still Corleis has a point. The global economy has become increasingly competitive for investment and Australia needs its fair share, even after 16 years of unprecedented economic growth and a considerable resources boom.

"Foreign Direct Investments are still terribly important for Australia in order to modernize our assets and to insure our participation in the global economy," explains Draffin, whose organisation has indeed been busy. The stock of FDI in Australia more than doubled in the past five years to US$ 247 billion. Valued at a A$ one trillion, Australia manages the fourth largest investment fund asset pool in the world. Australia has indeed a lot to say for itself: strong economic credentials with a forecasted growth rate of 3.0 per cent in 2007, its strategic location in the Asia-Pacific region, a stable democratic system, a business-friendly environment, a highly skilled workforce and last but not least, an excellent quality of life.

"Chinese is the second most spoken language Down Under. Not to forget the richness of natural resources and minerals that attract Chinese investors," Henry Wang, Invest Australia's Senior Investment Commissioner for Greater China points out over entrees. Australia is the 7th largest target for Chinese money and increasingly so since China envisages annual growth rates of around 10 per cent.

Two-thirds of Chinese investments abroad go into minerals and resources. "The driving force behind these investments is the search for strategic assets in steel or mining and the desire for famous brands," explains Wang. For a long time Chinese foreign investments were mostly led by state-run companies but in 2006 publicly-traded companies, listed on the stock exchanges of Hong Kong, London and Shanghai, took the lead. Still there are challenges to facillitate FDI from China since the state continues to play a central role in the decision making processes of Chinese business and because the RMB is not yet free floating, says Wang.

Even so, China's presence in Australia is considerable. As many as 80,000 Chinese students study in Australian eductaional institutions. "Australia has become a business hub and an R&D centre for many international companies in their pursuit to conquer Chinese markets with their millions of consumers. A lot of companies in the old world experience a lack of sophistication in dealing with China. They have a lot to learn from Australian companies," explains Nicola Watkinson, Senior Investment Commissioner for Europe. She urges, "Come to Australia to learn how to do business with China."

Apart from being the ideal location for corporate headquarters in the Asia-Pacific region, Australia has a good deal to offer in terms of low-risk and high-growth in Watkinson's experience: "If you are selling your products successfully in France, Sweden or the UK, the chances are 10:1 that you will sell successfully in Australia, too," she says. The can-do attitude of a knowledge-based economy and the local engineers' knack for innovation makes Australia stand out even more.

Ease of doing business, a common understanding, and the resemblance of the culture and corporate systems here to those in the EU make Australia attractive for FDI - not only in the eyes of European decision makers but of American ones too, adds Fred Welz, Senior Investment Commissioner for North America. He points out that the US is the largest investor from an Australian perspective accounting for 35 to 40 per cent of the total FDI.

Welz's biggest challenge though lies in the fact that people in the US generally think that he works for an investment bank. "I play along with it as a door opener but when Americans realise Invest Australia is a state run organisation, they shriek - until I tell them that our services are free of charge and we can indeed help them to profit from opportunities in Asia." Welz concludes there is a lot of interest in the US for Australia, "not only for mining and resources but also for IT and bio tech."

Masao Miyairi, Invest Australia's Senior Investment Commissioner for Japan shares the same experience. 50 years after the first trade agreements between the two states, Japan is today the third largest investor in Australia. "Traditionally the Japanese FDI targeted classic fields like agriculture and minerals, but today investments in sectors such as automotive, banking and green technologies are on the rise."

Globalization is an ongoing process and Australia seeks to get on the radar of foreign investors all over the world. As Sandra Fox, Senior Investment Manager for the Middle East, South and South East Asia, Latin America, the Pacific and Southern Africa explains, "The powerhouse of the world's economy is shifting further East and South, so Invest Australia's offices in Dubai, Singapore and India are especially dedicated to deliver competitive outcomes for local companies who are looking to invest in the South Pacific region. If the forecasts are right, India will be a bigger economy than the US in 2050."