Experts believe Australia is one of the top international destinations for corrupt Chinese officials wanting to escape their country. Pressure is now building in the country to improve the scrutiny of foreign investors who want to buy residency in Australia and use it as an opportunity to escape liability.

After Canada tightened its policies under an investor scheme, there are fears that Australia might soon become a haven for white-collar criminals. The Australian has previously exposed that the former head of Chinese utility State Grid was hiding in Australia with millions of dollars worth of stolen money. According to the report, Chinese authorities have identified at least six other former officials and state company executives who were accused of embezzlement and bribery with money worth $1 billion.

China has recently expressed concerns about Australia's significant investor visa programme because it might be used as a way for criminals to escape the authorities. Since June, the issue has been under scrutiny when China's state media CCTV had accused the Bank of China of money laundering in Australia. The report, now removed from all Web sites, had mentioned Australia as one of the possible destinations for "grey money" from China.

Australia's Trade and Investment Minister Andrew Robb defended the integrity of the visa programme and said he has not heard of any problem involving the significant investor scheme. He added that Australian immigration authorities would be referred such cases to Chinese officials if anything out of order was discovered during the screening process. Robb declared if there was any indication that the person applying for the visa has accumulated his wealth using illegal means, he will be referred to the local authorities of the source country.

Meanwhile, the Chinese government is attempting to move away from an economy driven by construction and investment to an economy spurred by domestic consumption. However, SMH reported that the process was challenging as China hurt the demand for Australia's iron ore as residential property construction accounts for 24 percent of steel consumption in the world's second-biggest economy.

With falling property prices, shadow banking, manufacturing slowdown and debt defaults, GMT Research Managing Director Gillem Tulloch remains bearish on China's chances for a smooth transition. He believes China will fall into recession in the next two years. He said the housing bubble in China has become unsustainable. Since China is Australia's biggest trading partner, the Australian economy is expected to feel the effects.

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