"Always Near You": A photo from Eandis energy company's Facebook page. "Many people do not understand ... that we can partly sell a strategic distribution network to a foreign investor." the minister was quoted by Belgian media as saying on the weekend. The Minister said he supported this view, before changing his mind. On Twitter he insisted he received the letter from VSSE only after he had already reversed his position. "The letter from VSSE and Eandis was received by my colleague [Flemish Minister for Local Governments Liesbeth] Homans and myself on September 26 in the late afternoon, " he said.

The letter was also sent to Prime Minister Charles Michel as well as the federal Interior, Energy and State Security ministers. It says: "This summer, State Grid came into disrepute after the rejection of an investment in Australia. The Australian government blocked an upcoming deal in the interest of national security." "State Grid Corporation of China does have ties to Chinese intelligence services," the memo stated. VSSE also warned customers' details could be made available to the Chinese government and its intelligence and military agencies. "In principle, the whole state apparatus is available for use by Chinese intelligence services."

"De facto the broad policies of such companies are being determined by the Chinese State, meaning the Chinese Communist Party. They are not obliged to report to shareholders, only to the state and the party." "Apart from a risk of interference by Chinese authorities this participation therefore also carries the risk that Eandis technology ends up with the Chinese military." "The electricity grid is considered to be a strategic sector. Because of the close ties between State Grid and the Chinese authorities and the Communist Party extreme caution with regard to an investment in a strategic sector is called for." The company is currently owned by 229 Flemish local cities and councils who will vote next week whether to approve or reject State Grid's bid. A three-quarter majority is required. Political journalist Isolde Van Den Eynde has been leading coverage of the story for Belgium's most-read newspaper Het Laatste Nieuws and says it has exploded into a hot political issue.

She says it is now difficult to predict if the deal will go through. "The situation is confusing. I don't think Belgians have an idea if it is good or bad news that the Chinese want to invest in Eandis." "Some politicians say – only off the record – if you change the deal with Eandis, it will cost us 5000 jobs that exist thanks to the Chinese investments in our country. "On the other hand you have this geopolitical problem. I think Belgians think: is this really true? Will it really come that far?" Björn Rzoska, an MP for the Greens party, known as "Groen", said his party was the first to object to the deal.

"The Greens have been countering the deal on the regional and the local level. Their objections were shared by numerous analysts and scientists," he said. Eandis said in a statement it retained confidence in State Grid and the security agencies had never flagged their concerns with the company. "To our surprise we have read in the press that the State Security department has formulated advice on the agreement between Eandis and State Grid Europe Limited (SGEL), based on what seems a rather brief analysis of SGEL. "If such a problem does exist, however, we expect to be informed by the security authorities at a later date." "This is by no means a 'takeover'," Eandis said.

"The public sector has an 86 per cent share. The private partner does not acquire a right to veto or block any decisions." The Belgian State Security service's warning on China's State Grid as translated for Fairfax Media in full: Synthesis: State Grid = Chinese state-owned company* Controlled by State Council and Party* Strategic interests of China placed 1st* can be used by Chinese intelligence services *State Grid investment in Australia rejected because of national security*State Grid has ties to Chinese military

Loading Referring to possible participation in EANDIS by Chinese energy company State Grid we want to share information with you on State Grid and this company's activities elsewhere in the world.

State Grid International Development is, according to information from Eandis, about to take a 14% share in Eandis through daughter company State Grid Europe Limited.

State Grid International Development is a daughter company of State Grid Corporation of China, a Chinese state-owned company. Chinese state-owned companies are under the control of the SASAC (State Owned Assets Supervision and Administration Commission), which in its turn is directly accountable to the State Council. De facto the broad policies of such companies are being determined by the Chinese State, meaning the Chinese Communist Party. They are not obliged to report to share holders, only to the state and the Party.

This summer, State Grid came into disrepute after the rejection of an investment in Australia. The Australian government blocked an up coming deal in the interest of national security.

State Grid Corporation of China does have ties to Chinese intelligence services. In principle, the whole state apparatus is available for use by Chinese intelligence services. With regard to State Grid we found the following clues in public sources:

* A daughter company of State Grid Corporation of China, China Electric Power Institute, has close ties to the Chinese military

* An other daughter company, NARI Group, is involved in the Chinese satellite navigation system Beidou. This system has can also be used for military purposes, and is being linked to espionage.

Apart from a risk of interference by Chinese authorities this participation therefore also carries the risk that Eandis technology ends up with the Chinese military.

The electricity grid is considered to be a strategic sector. Because of the close ties between State Grid and the Chinese authorities and the Communist Party extreme caution with regard to an investment in a strategic sector is called for. Follow Latika Bourke on Facebook