Australia stops Ausgrid sales to Chinese companies
Published: 19 Aug 2016 By Grace Kimberley
Following on from the recent security concerns from countries such as the UK, US and Australia over China’s investment plans, Australia has decided to reject bids received by two Chinese firms to buy a 50.4% stake in Ausgrid, an electricity infrastructure company owned by the state.
Last week, the sale had initially been prolonged, much to China’s alarm. The country has received a huge amount of rejection for much of its planned investment into the world’s energy industries. This includes Hinkley Point, the UK based nuclear power plant that has been put on hold by the UK government due to concerns over China’s 80% investment in the project.
According to Scott Morrison, Australian treasurer who made the decision to turn down China’s investment in Ausgrid, it would be in the nation’s interest to accept bids from foreign investors.
"After due consideration of responses from bidders to my preliminary view of 11 August 2016, I have decided that the acquisition by foreign investors under the current proposed structure of the lease of 50.4% of Ausgrid, the New South Wales electricity distribution network, would be contrary to the national interest," he said in a statement.
"This is consistent with the recommendation from the Foreign Investment Review Board."
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