Xenophon slams China free trade deal

Independent senator Nick Xenophon has slammed Australia's freshly-inked free trade deal with China, claiming it will damage the nation's sovereignty.

Senator Xenophon on Thursday said official figures have shown that free trade agreements "have not met the rosy predictions of governments of both stripes" over the past decade.

He warned that the deal signed with Australia's biggest trading partner on Wednesday jeopardises the nation's sovereignty by including a clause which allows Australian federal and state governments to be sued by Chinese firms.