As relations between Canberra and Beijing worsened, distrust of China and concerns about drought and water shortages fueled the idea that China is buying Australia’s water resources for malicious purposes.
The country first became a tradable commodity in some parts of Australia in the 1980s, but over the years, the market has grown into a $ 3 billion industry ($ 2.08 billion). US dollars) per year - the largest in the world.
In Australia, the driest continent in the world, empowered landowners can trade on the water market, while anyone - including foreign entities - can invest in their rights. this favor. Although the government has a foreign ownership register for such rights, details of the investments are not public and reports suggest that these investors may not always be transparent.
Last month, an updated foreign ownership registration report showed that China is the largest foreign owner of water interests in Australia.
As of June last year, Chinese investors owned 756 gigalitans, or 1.9 percent of the water available for sale in the market. While the US, the second largest shareholder, owns 713 gigalitres, equivalent to 1.85%. Australia currently has 10.5% foreign ownership, up from 10.4% in June 2018.
Last year was the hottest and driest country in history. Water costs can generally range in the range of A $ 1,000 per million liters during a drought and only to A $ 20 per million liters after heavy rains. Water rates vary by state - as of May, Western Australia paid the least, with quarterly bills of A $ 233, while Tasmanians were charged the most at A $ 365.
The detailed report sparked a series of media comments criticizing China, with one of Australia’s largest newspapers referring to the report in an article titled "Investigation Penalty." tons with Chinese water. "
More than a dozen other newspapers from around the country have published the story, and it has launched a new round of online conspiracy involving China and Australia’s security. The morning host on the popular Australian radio told his listeners that China was "putting both hands in our water" and that "our farmers are being robbed." ”The most essential.
Grafton said China’s focus on ownership is part of a series of more important issues, such as overexploitation of water and lack of transparency of ownership.
"More importantly knowing who owns the water, we need to know exactly how much and where it is and what it is being used for," he said.
“In terms of the size of the water market, the competitive nature of the market and the number of transactions, Australia really stands out, so what we really need is transparent information during the water storage period. This will allow us to effectively manage water. ” He further described.
The King River in Northwestern Australia.
Statistically, the amount of water available in major river systems in Australia has decreased and water costs have steadily increased since it became a tradable commodity, but last July, the cost of water in the river The Murray-Darling Basin has reached a record high of A $ 550 per megalit, up nearly 140% from A $ 230 a year ago.
There are complaints that companies, both domestic and foreign, are raising water costs and manipulating the market and are being investigated by the Australian Competition and Consumer Commission (ACCC).
Professor Grafton from the Australian National University said the publication of the ACCC report later this year will bring clarity to concerns about market manipulation and hope to expose the Chinese plot. shining.
“If you look at the overall market, they will raise and lower prices based on the amount of water available, but that does not mean that it is impossible to speculate or manipulate the market in specific locations at specific times. of a particular individual, ”he said.
“If we have full transparency on all companies and individuals, we will know how much they are extracting, how much they are archiving and what they are using it for, and now, of course, of course people don’t create any stories for no reason, ”he added.
