China is rich. Not like “new money” flash car rich. China is “kingdom of Saudi Arabia” 1980s petro-dollar rich – times ten.

So why haven’t their Sovereign Wealth Funds bought up more of the economy? Australia’s banks and mining companies have to be cheap. After all, what’s a few billion dollars between friendly countries?

Maybe it’s bad PR. After all we commoners still perceive China as a communist state best known for the Cultural Revolution and Chairman Mao. People say China and we think human rights abuses, Tibet, Tianneman Square and bad-fitting collarless jackets. Who wants to swap the set of crooks for another – better the devil you know, eh?

But have no doubt. In time we’ll see more direct ownership of Australian companies by Chinese firms and funds. Today’s acquisitions are through joint ventures, minority shareholdings or via blandly named funds or holding companies. Yet before that can happen – and be acceptable politically – the country of China does need to better develop its reputation among the mass populace.

 Opinion leaders and business professionals are already “on board” with China. Yet that hasn’t driven down to the Late Majority and other large pockets of the population. It also hasn’t reached government - as China and 3Com learned today (see The New York Times).

It will take more than a series of “Survivor China” to gain mass support. But that was a good start!