Australia will enhance the barrier of entry to its markets over national security concerns, according to the country’s treasurer Josh Frydenberg.
In response to concerns about opportunistic takeovers in the midst of a coronavirus pandemic, Australia will make it more difficult to acquire what it deems to be «sensitive national security business», according to a treasurer document seen by «Reuters».
According to the report, most private investments valued under A$275 million ($69 million) are not screened while the threshold for state-owned enterprise is zero. Affected sectors include telecommunications, energy, technology and defense manufacturing which will all face screening regardless of value, a «Bloomberg» report added.
Draft rules are targeting a July release with expectations for regulatory effect from January 1, 2021 onwards.
«National Security»
The market access rules were tightened «over fears that China was spying on sensitive health data», according to multiple reports by Australia and New Zealand media.
Furthermore, a spat has been ongoing between Canberra and Beijing after calls by Australian Prime Minister Scott Morrison for an independent probe into the origins of the coronavirus outbreak in Wuhan and the latter’s subsequent barley and meat-linked trade attacks.
«I don’t believe why it should,» said Morrison in response to reporter’s questions in Canberra on whether the new changes will create tensions with China. «Countries will make decisions on their own interest for their own rules and we respect the rules and interest of other countries.»
