The Federal Government's powerful Foreign Investment Review Board (FIRB) will scrutinise a move to partly sell a Tasmanian consultancy to a Chinese company.

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Hydro Tasmania's consultancy, Entura, provides advice and designs electricity assets for power companies across Australia.

Hydro Tasmania, a state-owned enterprise, is negotiating a joint-venture with two subsidiaries of PowerChina that will leave Hydro with a minority stake in Entura.

The negotiations are continuing, but it comes after the Federal Government made a preliminary decision to block the sale of Ausgrid in New South Wales to Chinese interests, citing national security concerns.

It is understood the Entura deal would also be examined by the FIRB.

Professionals Australia's Luke Crowley is worried about what it means for Entura.

"Both on the sale itself, or if the sale does go through, it could ruin the organisation's alibility to play in the market," he said.

Mr Crowley has also questioned whether being partly owned by a Chinese company will influence what customers Entura can accept.

"How are they going to bid on Australian projects if this is a condition that the Federal Government has put on, that there's a concern about Chinese state ownership?" he said.

"And really [it could] only leave some odd work for Entura nationally for private sector."

In a statement, a spokesman for Treasury said he could not comment on which foreign investments may or may not be subject to screening.

Decision 'one for FIRB'

Hydro Tasmania CEO Steve Davy declined to be interviewed, but in a statement said the AusGrid likeness was comparing apples with oranges.

"The AusGrid transaction is fundamentally different to the proposed Entura joint venture. The Entura proposal relates to consulting services," he said.

"We're confident the proposed joint venture with PowerChina Huadong and HydroChina International will unlock new markets and project opportunities for Entura and its people."

The joint venture was initially slated to be finalised by the end of last year, but Mr Davy said negotiations were continuing.

"Discussions on the proposed joint venture are progressing well. We're taking the necessary time to get the details right," he said.

"The proposal has been subject to intensive due diligence."

No timelines has been given for a decision.