The annual tracking study from the Australian National University recorded $1 billion of Chinese investment in 2020 consisting of real estate, mining and manufacturing deals.

That's a 61% fall larger than the 42% decrease in foreign direct investment globally measured by the United Nations amid the Covid 19 pandemic.

That's according to Shiro Armstrong, the director of the East Asian Bureau of Economic Research.

Australia announced a shake up of its foreign investment laws in 2020 to give the government the power to veto or force the sale of a business if it creates a national security risk.

Chinese company Manu abandoned to deal to buy the Australian dairy firm Lion Dairy in drinks from Japanese company Keuren in August after the Australian government indicated it would block the sale.

The Chinese embassy said in November that 10 Chinese investments had been blocked in Australia on national security grounds among a list of 14 grievances Beijing had about Australian government policy.

China has since imposed dumping tariffs on Australian wine and Bali and restricted the unloading of Australian coal at Chinese ports.

Chinese investment in Australia peaked at $16.5 billion in 2016.