Australian Ministry of Treasury decided to veto China State Grid and Cheung Kong Infrastructure Holdings Ltd’s application of leasehold within 99 years for 50.4% interests of Ausgrid on August 19. The Ministry of Commerce has kept close eyes on the progress and its spokesman Sun Jiwen made comments.
Sun Jiwen said it’s normal business for China State Grid to lease the Ausgrid through bidding in accordance with market laws. The Chinese companies strictly abide by the international bidding procedures and guidance of Australia’s Foreign Investment Review Board to engage in the project and support security check requested by the Australian government.
Sun Jiwen stressed the Chinese side respects the security check launched by the relevant countries. However, in the final stage of open bidding, the Australian side opposed China’s engagement in this project on the pretext of national security. That demonstrates the uncertainty of Australia’s investment environment and, and will demoralize Chinese enterprises’ enthusiasm to invest in Australia and will have negative impact on China-Australia trade and economic relations. The Chinese side expects the Australian side to use the security check prudently and create an fair, just and transparent environment for foreign enterprises’ investment in Australia.