China will snap up Queensland's power assets if they are leased out by the Liberal National Party, mining magnate Clive Palmer says.

Mr Palmer on Monday said China's State Grid Corporation - the world's largest state-owned electricity company - had hired HSBC to offer advice on how it could acquire $50 billion of assets from the Queensland and NSW governments.

The head of the Palmer United Party laughed off Premier Campbell Newman's comments on the weekend that he would prefer the state's power grid to be leased by Australian super funds.

"The Chinese government has got more money than anyone else in the world, and they will outbid anyone to take control of our country," Mr Palmer told AAP.

"The assets will be owned by a government but it won't be our government, it will be a foreign government and they will control how we live."

Mr Palmer, who previously has been outspoken on China's foreign investment in Australia, said electricity prices would rise under any such deal.

"Why would you enter into any commercial transaction if it wasn't to make money? You don't do it," he said.

Mr Palmer said Mr Newman, whose government plans on earning $37 billion from the 50-year leases, would not hesitate to offload every state-owned asset.

"He's outsourced services to the hospitals, he's outsourced the maintenance of the main roads in Queensland to private companies, so he's getting ready to sell the whole state and the Chinese government has announced it's got $50 billion to buy it."