The intelligence agency's deeper involvement in vetting foreign investment reflects a hardening view inside the government towards takeovers of critical infrastructure, sensitive technologies and the potential abuse of customers' personal data by foreign actors.

They're basically looking at making sure foreigners can't build up profiles of Australian citizens. — Foreign investment adviser

A foreign investment adviser said on Monday that FIRB and the intelligence agencies were paying much closer attention to who in an acquiring firm would control personal data, whether it would be exported offshore and if a foreign director in the business could access the data on a "need to know basis".

The probing not only applied to the technology and healthcare sectors, but also industries such as electricity retailers with hoards of customer data containing billing details and addresses.

"The government and intelligence agencies see a lot more concerns now about information and data security than they ever have before," the foreign investment adviser said.

"They're basically looking at making sure foreigners can't build up profiles of Australian citizens."

Data sensitive assets

FIRB earlier this year expressed concern about foreign companies acquiring "data-sensitive assets" including in the area of healthcare.


The FIRB is chaired by former ASIO boss and Australia's former ambassador to China, David Irvine. His appointment has coincided with the government taking a harder line against Chinese state-linked investments.

China's Jangho Group in January launched an unsolicited bid to acquire Healius (previously known as Primary Healthcare), a company that holds sensitive medical records on millions of Australians through its 2400 pathology clinics and 70 medical centres. The deal did not proceed.

Then-treasurer Scott Morrison in 2016 blocked on national security grounds CKI and China's State Grid Corporation from buying half of NSW power distributor Ausgrid.

Treasurer Josh Frydenberg last year stopped the privately-owned Hong Kong company Cheung Kong Infrastructure from buying gas distributor APA Group, partly due to concerns Beijing was now exerting greater control over companies in the former British colony.

Spy agencies too powerful

A new essay in the latest issue of Australian Foreign Affairs, "Hostile Takeover: ASIO’s New Role As Investment Gatekeeper" by author David Uren raises concerns that intelligence officials are becoming too powerful in thwarting Chinese investment.

"The problem is that national security bodies only see foreign

investment as a threat to be managed," Mr Uren notes.

"Amid sharpening geopolitical tensions between the United States and China, Australia’s national security concerns about Chinese investment are only likely to become stronger.


"It is important that the national security voice remains contested.

"Treasury’s continued control of final decision-making over foreign investment is essential."

"It is only from the economic perspective carried by Treasury that foreign investment is truly welcomed for its contribution to the wealth and prosperity of the nation, now and into the future."

ASIO's annual report said: "We are keenly aware of the importance of foreign investment to Australia’s economic prosperity, and fully support the need to balance national security with broader national interest considerations."

The government in 2018 set up the Critical Infrastructure Centre, a unit of the Department of Homeland Affairs designed to provide "clear, consolidated and early" national security advice to inform the Treasurer's national interest decision on foreign investment proposals.