There is growing concern within the Morrison government about how to handle foreign takeovers of Australian businesses which have ended up in financial strife as a result of the outbreak of the coronavirus.

The Foreign Investment Review Board is bracing for attempts by foreign companies, particularly from China, to take over distressed Australian businesses and assets.

Treasurer Josh Frydenberg has been fielding concerns about takeovers of Australian assets. Credit:Alex Ellinghausen

The concern has sparked calls from Liberal MPs to revisit the criteria for FIRB approval of foreign acquisitions, including putting a greater emphasis on company links with foreign governments.

While no such cases are before the FIRB, Treasurer Josh Frydenberg has privately expressed concern about Australian assets ending up in the hands of opportunistic foreign interests over the coming months when more companies are expected to fold.