A study by the University of Sydney and KPMG has found Chinese investment in Australia is poorly understood and generally perceived as more government-driven than the reality.

The report found Chinese overseas direct investment (ODI) in Australia was distinguishable by four characteristics: a focus on mining and energy, “mega-sized” deals, domination by state-owned enterprises (SOEs), and a preference for investing in listed companies.

It concluded SOEs investing in Australia operated similarly to other commercial international investors.

Nearly 80% of Chinese ODI in Australia was directed into the mining sector, with a further 12% going into the oil and gas industries.