Is China running the Australian Parliament?

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In what universe are Australian politicians living? From The Australian:

The donations furore engulfing Labor senator Sam Dastyari has highlighted extensive Chinese ­patronage of Australian political parties and put the ALP under pressure to reveal the nature of more than $250,000 in benefits.

Analysis by The Australian shows Top Education Institute — whose payment of a $1670 bill on Senator Dastyari’s behalf ignited the current controversy — and its Chinese-government linked chief executive personally contributed $252,078 to the ALP in 28 payments over five years.

Australian Electoral Commission filings indicate each of those contributions was recorded under the heading “other”, as opposed to “donation”, indicating they took the form of services, or goods such as airfares, the payments of bills and tickets to functions and events.

In a sign of its growing “soft-diplomacy” initiatives towards Australia, China now outstrips the US as a destination for sponsored travel for Australian politicians and trails only Israel.

At a speech at the National Press Club on Wednesday, out­going US ambassador John Berry warned of the influence of “soft power” from countries that were not democratic.

“This is not aimed at anyone specifically, not China specifically, but there are other countries in the world — Russia, North Korea, Iran — none of which is a democracy, and yet somehow in the United States at least we’re finding increasingly they’re getting involved in our democracy, while they do not share that core value.”

The mounting attacks on Labor’s “Manchurian candidate” came as the ABC reported that the Australian Security Intelligence Organisation head, Duncan Lewis, last year briefed federal ­directors and secretaries of the Liberal, Nationals and Labor parties about security risks posed by foreign-linked ­donations.

But it goes much wider, from Domainfax:

He’s risen to national attention as the Chinese businessman who forked out for Senator Sam Dastyari’s travel bill.

But the story of Minshen Zhu is far bigger than just the NSW Labor powerbroker.

Dr Zhu is a man with links to the communist government in China, helping trigger renewed debate about political donations and the rising importance of Chinese money in Australia.

He has emerged as a prolific and well-connected donor to the major parties, with his company contributing more than $230,000 to Labor and the Liberals since 2010, according to Australian Electoral Commission records.

This includes more than $186,000 to the national arm of Labor between 2010 and 2015, and $44,000 to the NSW Liberal Party between 2013 and 2015.

As owner of private education provider Top Education Institute, Dr Zhu has met an impressive array of Australia’s most powerful politicians.

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And from last week:

Chinese businessmen with links to Foreign Minister Julie Bishop have donated half a million dollars to the Western Australian division of the Liberal Party during the past two years, political disclosures reveal.

All the donors have links to the Chinese government, and the vast bulk of the money was given by companies with no apparent business interests in WA. Ms Bishop, the leading federal member of the party in that state, has singled out each of the three key donors for praise.

Several of the donations have been obscured by the channelling of funds via executives or related companies, or by the donors’ failure to disclose them to the Australian Electoral Commission, in apparent breach of Commonwealth law.

…In 2014-15, billionaire Chau Chak Wing’s Hong Kong Kingson Investment Ltd gave $200,000 to the WA Liberal Party. The donation is listed on the party’s disclosure to the AEC, but the company made no disclosure.

The controversial tycoon has given millions to Liberal, National and Labor parties over several decades. His Kingold conglomerate has expanded from property development to hospitality, education, finance, health, media and culture that extends “from Guangzhou, Beijing and Hong Kong to Sydney and Brisbane in Australia,” according to its website. No business interests in WA are listed.

And more today, from the AFR:

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He’s one of Australian politics’ biggest mysteries. He’s been photographed with nearly all the nation’s political leaders, channelled more than $1 million into the back pockets of the major parties and backed Bob Carr’s China institute at UTS.

He’s paid Senator Sam Dastyari’s legal bills, hired former NSW deputy premier Andrew Stoner and former treasurer Eric Roozendaal, he’s the head of the oddly-named “Australia Council for the Promotion of Peaceful Reunification of China” and been dubbed the “king of the mountain” after several wealthy Chinese bought around him after he spent $12.5 million on a lavish mansion in Mosman.

Now, in an exclusive first English-language interview, the man who is arguably the reigning emperor of the Chinese community in Australia, Huang Xiangmo, wants to shed his enigmatic image.

“You can ask me anything, see I’m no mystery!” the 47 year-old says.

“To me politics is just like sport. I’ve recently been in France to watch the [European Championship] final. It’s about supporting a competition and to me observing politics is just like enjoying a good soccer match.”

Which he likes to win, obviously, from earlier this week:

The Chinese community will increasingly demand a greater say in Australian public life, after being used as a “cash cow” by both sides of politics then ignored, according to one of the country’s biggest political donors.

Huang Xiangmo, chairman of property developer Yuhu Group, who has given more than $1 million to both sides of politics in Australia since 2012, said Chinese donors should no longer be silent.

“The Australian Chinese community is inexperienced in using political donations to satisfy political requests,” he wrote in an editorial for the state-run Global Times newspaper, which circulates throughout China, on Monday.

“We need to learn … how to have a more efficient combination between political requests and political donations”…

The Australian Financial Review and others have pointed out in recent months how Chinese soft power has permeated Australian think tanks, political parties, the media and schools.

Notice that all of these donations are associated with the Australia’s people ponzi model of growth. I fear that the ‘citizenship exports’ economic model threatens a fundamental realignment of Australia’s strategic outlook as Australian’s personal wealth, business and political decision-making create an irresistible tide of moral suasion that hollows out Australian commitment to ANZUS.

That’s fine if we make an explicit choice to do it via reasoned debate, but bought, packaged and delivered in the shadows to enrich a few realtors and corrupt politicians?

Can we, like, ban foreign political donations now?

About the author
David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.