Full Breakdown
China's Multibillion-Dollar Investment in Global Mining: Implications for Australia
3/19/2026, 2:52:28 PM
Overview of China's Investment Strategy
Since 2023, China has invested over US$120 billion in overseas mining and mineral processing projects, focusing on critical minerals such as lithium and rare earth metals. This investment is part of a broader strategy to enhance clean energy usage in developing countries and support the transition to a zero-emissions global economy, according to the Australian think tank Climate Energy Finance (CEF). The report titled “Raw Power” emphasizes that China's outbound foreign direct investment (OFDI) is integral to its global green industrial strategy, which aims to secure mineral inputs for renewable energy technologies.
Impact on Australia’s Mining Sector
Australia, rich in strategic resources like bauxite, copper, and lithium, faces significant risks due to its reliance on a "dig-and-ship" mining model. Tim Buckley, CEF Director, warns that Australia is not capitalizing on its resource wealth at a time when global demand is shifting towards these minerals. The report highlights that while China is rapidly building mining and processing capabilities in regions such as Africa and South America, Australia’s investment in onshore processing remains limited. This has resulted in a dramatic decline in Chinese investment in Australia, which fell by 85% since 2018, making up only 1.5% of total inbound investment in 2024.
Strategic Opportunities and Challenges
Despite the challenges, the CEF report suggests that Australia still has a window to reposition itself as a key player in the global green industrial supply chain. By leveraging initiatives like the A$81 billion Future Made in Australia program and enhancing domestic processing capabilities, Australia could transform its resource wealth into industrial capacity. Buckley emphasizes the urgency of this transformation, stating, “China is investing at extraordinary scale and speed... Australia has a closing window to leverage its resource endowment.”
Criticism of Current Approaches
Critics argue that Australia has long undervalued its economic relationship with China, particularly in the context of the green industrial strategy. Matt Pollard, a net-zero transformation analyst, notes that Australia’s economy remains closely tied to China’s initiatives, yet it has not effectively leveraged this relationship. Associate Professor Marina Yue Zhang from the Australia–China Relations Institute underscores the importance of developing clearer policy settings to assess foreign investments, including those from China, based on their potential to support domestic value-adding and industrial capability.
Verbatim Quotes
- “Australia is sitting on some of the world’s most strategically valuable resources at precisely the moment the global economy is re-organising itself around them but sitting on them is all we are doing,” — Tim Buckley, CEF Director
- “the same model China used to build green industrial capacity across the Global South is available to Australia” — Matt Pollard, Net Zero Transformation Analyst
- “The race to net zero is not only a race for technological innovation, but also for minerals, metals, processing capacity, and industrial control.” — Marina Yue Zhang, Australia–China Relations Institute
Conclusion: The Path Forward
To capitalize on its mineral wealth and emerging renewable energy capabilities, Australia must adopt a strategic shift in its national interests and economic security. The CEF report indicates that economies that effectively transform resource wealth into industrial capability will be the ones to thrive in the transition to a net-zero future. As Australia navigates this complex landscape, the need for decisive action and strategic partnerships, particularly with China, becomes increasingly critical.
