Coalition calls Foley's China worries racism

ACCUSATIONS of racism have been fired at Opposition Leader Luke Foley as he continues to demand answers about a potential Chinese bidder for the state's power assets.

Chinese government-owned energy giant State Grid Corp has been in talks with the NSW Government, but the details of those conversations have been kept largely under wraps.

The Coalition has labelled racist a union-backed advertising campaign taking aim at Treasurer Andrew Constance for keeping quiet about what the discussions entailed.

Mr Foley said the sale posed a security risk, with the Chinese Government owning 49% of the state's power grid.

"I don't think it's a smart thing to do to sell our electricity network to a foreign government," he said.

"The distribution network goes to Holsworthy army base, to the Richmond RAAF base, to our defence installations.

"Of course the security agencies (including ASIO, ASIS) will have some views on these matters."