Australian treasurer opposes sale of Ausgrid to Chinese bidders, Xinhua accuses Canberra of Chinaphobia

Chinese interest in Australian properties and assets have surged the past few years as individuals and companies from China acquire apartment units, leisure islands and recently attempted an electricity provider. However, Treasurer Scott Morrison blocked the proposed 99-year lease of Ausgrid to Chinese and Hong Kong bidders which angered Chinese media.

In opposing the $10 billion sale of Ausgrid, the electricity provider in New South Wales, to bidders State Grid Corp of China and Cheung Kong Infrastructure of Hong Kong, Morrison cited national security concerns. Ausgrid supplies electricity to parts of Sydney, Wollongong and the Hunter region.

NSW Premier Mike Baird and Treasurer Gladys Berejiklian hoped to lease half of Ausgrid for 99 years to raise funds for infrastructure projects, reports ABC.

Morrison explains, "Ausgrid's footprint includes critical power and communications services that Ausgrid provides to business and government.” He adds, “The national security concerns are not country-specific and relate to the transaction structure and the nature of the assets.” The treasurer stresses Ausgrid’s footprint includes critical power and communication services it provides to business and government.

His decision did not sit well with Chinese state media and former NSW Premier Bob Carr who believes the block of the sale elevates xenophobia and economic popular sentiment stirred by the last election result. However, Morrison argues that because what he made was not a political decision but based on national security, he could not provide further details.

Writer Luo Jun of Xinhua News Agency was more scathing as he accused Morrison of having “Chinaphobia” and “paranoia.” He writes, “To suggest that China would try to kidnap the countries’ electricity network for ulterior motive is absurd and almost comical, since it is widely recognised in the world that business reputation is critical to any corporate activity.”