By: Elena Grace Flores
Australia’s involvement in the conflict with China is now evident in the trading sector. Believe it or not. Australia just blocked the sale of Ausgrid, which is the country’s biggest energy grid, to Chinese companies that was allegedly due to security concerns.
A 50.4% stake in Ausgrid was cancelled by Australian Treasurer Scott Morrison that was the bid of the two Chinese firms. They are not just selling to them because selling to foreigners is considered as against national interest.
“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,” Morrison said.
Morrison’s decision naturally made the Chinese feel that they are being mistreated but he cannot deny the fact that he was worried of their activities that can be a problem for the country later on. In fact, he has raised the concern in the past but no actions were taken – that’s why he initiated it this time undermining their massive lost in sales since Chinese traders are one of Australia’s major markets.
On the part of the Chinese, they were obviously not happy with the discrimination and accused Australia for being so over protective. Hence, better be safe that sorry, right?