Australian MP claims Labor state election campaign jibe against Chinese investment racist

One of Australia's most senior politicians has back claims that the New South Wales (NSW) Labor Party leader Luke Foley was using racist tactics by criticizing Chinese investment in the state's electricity sector.

Federal Liberal MP and "Father of the House" Philip Ruddock was critical of Foley's comments regarding Chinese involvement in the proposed sale of NSW's electricity companies.

The sell off of NSW's electricity infrastructure is a key issue in the state election scheduled for Saturday, and the Chinese investment has become a political issue.

In a statement to Xinhua, Ruddock said Foley had "succumbed to inappropriate cheap popularism".

"At a time when Australians have unanimously endorsed (former prime minister) Malcolm Frasers legacy of opposition to racial discrimination and commitment to multiculturalism it is disappointing to see that endorsement undermined by Luke Foley's ( NSW Labor leader) comments on Chinese investment in Australia," he said.

"Australia has always welcomed foreign investment with little complaint because it benefits the nation, the Chinese investment is modest in comparison."

"But it should be just as welcome as any other. It is disappointing that in order to make a political argument Luke Foley has succumbed to inappropriate cheap popularism."

NSW Treasurer Andrew Constance on Tuesday said an Australian union campaign against Chinese investment in local electricity assets was racist and puts trade relationship at risk.

The Construction, Forestry, Mining and Energy Union (CFMEU) is running an advertising campaign, attacking China's State Grid Corporation which is the potential buyer of leases over the state' s power network.

Constance said the union campaign was a "racist rant" and the ads were "despicable". Enditem