Union denies racism in NSW ad campaign

The Construction, Forestry, Mining and Energy Union denies its new ad campaign about NSW electricity privatisation is racist.

The new advertisements, set to air on Monday night, single out China, according to the Seven Network.

The CFMEU claim there's a plot to put the Chinese government in control of NSW state electricity assets.

NSW Treasurer Andrew Constance admitted he had met with the State Grid Corporation of China - the largest state-owned electric utilities company in the world - but said it's not a secret.

"All investors will have to adhere to the foreign investor review board requirements," he said.

Premier Mike Baird said the unions are running a scare campaign.

"Obviously that's having some form of influence but the truth is a very different matter," he said.

But general President of the CFMEU's Mining and Energy Division, Tony Maher, denied they are being racist.

"Imagine if we wanted to buy into a Chinese electricity network. It just wouldn't happen," he told the Seven Network.

"We shouldn't be the mugs."