In 2016, the Turnbull government was adamant that two Chinese companies bidding for the NSW government's electricity distribution network, Ausgrid, should not be allowed to buy the majority stake on offer from the Baird government for national security reasons. Scott Morrison said at the time:

... the foreign investment proposals put to me for this transaction are contrary to the national interest, in accordance with the required provision on the grounds of national security ... In particular, during the review process national security issues were identified in critical power and communications services that Ausgrid provides to businesses and governments.