Rare earth resources Photo: VCG

　　Australian Treasurer Jim Chalmers announced on Monday that he had ordered six shareholders to divest their holdings in Northern Minerals, citing so-called security concerns, Reuters reported. Chinese experts denounced the move as a typical case of overreach of national security, which damages the investment environment of Australia and undermines global supply chain stability.

　　Chalmers claimed the decision aims to protect the country"s national interest and to ensure compliance with its foreign investment framework, Reuters reported.

　　Six shareholders in the A$229 million ($163 million) firm must sell their stakes within two weeks from Monday, according to a statement from the Treasury. Five of them are registered in Chinese mainland or Hong Kong SAR, according to the statement, and one in the British Virgin Islands, according to a Bloomberg report.

　　Northern Minerals said it was aware of the Treasurer"s orders in a statement and was considering its next steps. Its shares fell more than 8% to A$0.022 and were trading at less ‌than half ⁠the price of equity it issued in a placement last October, according to the Reuters report.

　　“This forced divestment represents a classic case of ‘pan-securitization,’ where strategically valuable business collaborations with Chinese links are being securitized and politicized, turning regulatory oversight into country-specific discrimination,” Chen Hong, a professor and director of the Australian Studies Center at East China Normal University, told the Global Times on Monday.

　　The expert noted that the practice sends an extremely dangerous signal to international investors that Australia’s investment rules are highly uncertain.