Turnbull backs Kidman sale decision

Prime Minister Malcolm Turnbull has defended his government's decision to block the sale of S Kidman pastoral company to the Chinese.

"The Australian government decides who invests in Australia, we're a sovereign country," Mr Turnbull told Sky News on Sunday.

"The scale of this investment was enormous. It was of a scale that was unprecedented."

He said most Australians would agree with Treasurer Scott Morrison's decision last Friday.

Mr Morrison halted the sale of S Kidman and Co properties, which cover about one per cent of Australia's land mass, to a consortium of Chinese and Australian companies.

Labor has slammed the treasurer's handling of the decision, calling it highly irregular and saying it creates uncertainty and confusion among foreign investors.

Mr Turnbull said the decision wasn't xenophobic and China would understand and respect Australia's position.