Independent Senator Nick Xenophon says he's not at all xenophobic but draws the line at the Chinese taking over Australian miner Rio Tinto.
In a television advertisement with Senate Nationals leader Barnaby Joyce, Senator Xenophon said it did not make sense for an arm of the Chinese government to control and set the prices of Australian resources.
"Despite my name I am certainly not xenophobic," he says in the ad.
"Foreign investment has brought enormous benefits to Australia but sometimes it's important to say no to a deal that's lousy for our country.
"The proposed purchase by Chinalco, a Chinese Communist Government-owned company, of Rio Tinto's strategic mineral assets is not in our national interest.
"Chinalco is seeking Australia's approval to buy a $27.69 billion stake in resources giant Rio Tinto.
The move would increase its stake in Australia's second largest resource company from 11 per cent to 18 per cent, giving it two board seats.Senator Xenophon said 18 per cent was a significant stake and it would only be a short step to effective control.
"I am not against foreign investment. What I am against is having a company that is the arm of a foreign government having a key role in our strategic resources," he told Sky News.
"It can influence and control the price of those resources. I think we'd be mugs for that deal to go ahead."