CSIRO’s China projects subject to risk panel

Government agencies and departments working on China projects are increasingly risk-aware.

Centre Alliance senator Rex Patrick said disclosure was key for transparency. Picture: Kym Smith

Government agencies and departments engaged in commercial research and equipment contracts with Chinese government companies and institutes are increasingly applying risk ­assessment and due diligence amid heightened awareness over foreign interference.

The CSIRO, Australia’s nation­al science research agency, has set up a “major transaction committee” for proposals exceeding ­“financial or risk thresholds”.

The Australian understands government departments and agencies have increased probity of commercial and personnel ­arrangements with foreign ­nation­s, with a focus on China.

Analysis of current contracts show CSIRO has entered into commercial arrangements with Chinese research centres and institutes­, including the National Astronomical Observatories of the Chinese Academy of Sciences, Beijing Genomics Institute in Shenzhen, Beijing General Researc­h Institute Mining and Metallurgy and Chengdu Cezhen Science and Technology.

CSIRO’s collaboration with the Chinese Academy of Sciences involved a three-year contract worth almost $1.6m for “intellect­ual property”. CSIRO engineers collaborated with the leading Chin­ese research institute on the construction of the world’s largest radio telescope radar dish.

The project, dubbed the Five-hundred-metre Aperture Spherical Telescope, or FAST, dwarfed the previous largest single-dish telescope in Puerto Rico. The telescope’s 19-beam receiver, a key component, was designed and built by CSIRO engineers.

 

The Department of Agriculture listed a $115,000 contract with the China Centre for Agricultural Policy, which is associated with Peking University, for the “supply of services”.

The Royal Australian Mint confirmed a $150,265 contract with the Nanjing Mint, and said it was “trialling a coin press” made by the Chinese Mint.

A Mint spokeswoman told The Australian the contract, acquiring “industrial process machinery”, was a “normal commercial arrange­ment and not subject to government protocols”, and did not involve sharing technology with the Chinese Mint.

Centre Alliance senator Rex Patrick said disclosure was key for transparency. “It has a deterrent effect if there are requirements for disclosure, but in the normal course of business it allows people to ask questions,’’ Senator Patrick told The Australian.

“In circumstances where you’ve got a governm­ent-funded entity, extra transparency is helpful. I would also be keen to understand how the activities they’re conducting and co-operating on … are complying with the Defence Trade Controls requirements.”

A CSIRO spokesman said the agency periodically reviewed its due-diligence guidelines and had put in place “risk and contract ­approval procedures”. “Where a proposal exceeds fin­ancial or risk thresholds, (it) has an additional review by the CSIRO major transaction committee,” he said.

“We work closely with our departme­nt and consult with other agencies … on an ongoing basis in relation to CSIRO’s international activities.”

With growing concern over in­tellect­ual property theft, CSIRO said it “routinely includes IP protection provisions in all relevant domestic and international contracts. For major partnerships, it is typical to have a steering committee in place with oversight of project­ and IP arrangements”.

In August, The Australian revealed a CSIRO chief research scientist and director of China engagement had been appointed to a unit of Beijing’s United Front Work Department, which runs overseas influence operations. The Australian also reported that professor Xue Jingling had received grants from the Australian Research Council and CSIRO.