'Abbott will hurt Aus-China relations'

Written By Unknown on Sabtu, 06 April 2013 | 23.50

Australians doing business in China will be offered training in how to play by its rules and avoid jail.

JULIA Gillard has accused Tony Abbott of crazy and dangerous words on superannuation and warned his ''economic simpleton talk'' will cost Australia investment and jobs in Asia.

The Prime Minister launched her attack on the Opposition Leader as she faced criticism from business leaders about Australia's approach to China and foreign investment system.

Mining boss Andrew Twiggy Forrest said Australia was taking China for granted while a senior Chinese businessman Li Ruguo from the Export Import Bank said Australia could do better.

Speaking in China where she is attending the Bo'ao business forum, Ms Gillard lashed out at Mr Abbott's comment in Melbourne that superannuation changes were a raid on people's funds and ''there are shades of Cyprus about it''.

''This just shows how Mr Abbott is unfit on economic matters. This is a crazy statement that no person of reason could make,'' she said.

Prime Minister Julia Gillard holds a press conference on the sidelines of the Bo'ao Forum for Asia.

''These are dangerous words to play with.''

Ms Gillard said Mr Abbott did not know what he was talking about after she met with IMF boss Christine Lagarde and discussed the global economy and Cyprus where there has been an economic crisis and restrictions on people withdrawing money from the bank.

Ms Gillard and Trade Minister Craig Emerson also claimed Mr Abbott's policies would hurt investment and put at risk a free trade agreement with China, even though Labor has not been able to complete it after eight years of talks.

''The kind of economic simpleton talk that we see from the other side of politics will make a free trade agreement with China, and all the jobs that would flow from it for Australians, impossible,'' the PM said.

Julia Gillard meets with IMF Managing Director Christine Lagarde at the Bo'ao Forum for Asia. Picture: Luke Marsden

Ms Gillard rejected business criticism, saying in the past 10 years 380 foreign investment proposals had been approved and none rejected.

''We work every day to strengthen our relationship with China,'' Ms Gillard said.

Dr Emerson claimed the Opposition would cut the threshold value for approval from $244 million to $15 million and that would be a signal that foreign investment was not welcome in Australia.

Ms Gillard also announced the opening of a $37 million ''Asian Bound'' scheme for 3500 Australians to get a subsidy to study in Asia from July 1.

The PM meets with Zhou Wenzhong, Secretary General of the Bo'ao Forum for Asia. Picture: Luke Marsden

Dr Emerson said building such people-to-people links and also helping Asians to study in Australia was one of the best ways to boost Australia's prospects in the Asian Century.

He said over the years there would be ''literally thousands of ambassadors'' for Australia spread through Asia.

Dr Emerson also said he would release a guide to help Australians doing business in China after recent concern about some business people being jailed and caught up in scandals.

He said while there were great rewards in China, there were also risks.


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