Australia's paranoia over Chinese investments baseless

Last week, the Australian government blocked State Grid Corporation of China and Cheung Kong Infrastructure Group's bid to lease Ausgrid, a major New South Wales state power grid, on national security grounds. The two Chinese companies had bid $7.7 billion to lease the grid for 99 years.

Although the Chinese companies can appeal against the move in a week, they are not likely to succeed in leasing Ausgrid because the Australian federal government can use "national security" again to veto their bid, as it had done to the SGCC bid for Transgrid in the same state in November.

Australia's Federal Treasurer Scott Morrison declined to detail the security issues involved, saying: "The issues are real. They're matters obviously of national security interest to the Commonwealth and elaborating on those obviously would not be in the national interest either."