Following the Australian government’s recent rejection of Archer Daniels Midland Co’s (NYSE: ADM) AUD3.2 billion bid to acquire GrainCorp Ltd (ASX: GNC, OTC: GRCLF), we noted that some skeptics were wondering whether Australia is still open for business, as the country’s new Prime Minister Tony Abbott boldly proclaimed on election night back in early September.

Our contention remains that while politics will occasionally intrude, as we believe they did in the GrainCorp deal, the ascendant Liberal-National Coalition has otherwise undertaken some undeniably pro-business actions, including its efforts to repeal the carbon tax and the Minerals Resource Rent Tax (MRRT), as well as its aggressive negotiations in pursuit of bilateral free-trade agreements (FTA). As we’ve written previously, Mr. Abbott is intent upon securing an FTA with China within 12 months, in addition to similar deals with South Korea and Japan.

While the GrainCorp deal was an apparent victim of intra-party politics–the rural constituency of the Nationals was opposed to it–the government’s hope to win an FTA with China seems to be compelling it to green-light acquisitions by the state-owned enterprises of its largest trading partner. And perhaps the government is also keen to reestablish its business bona fides in the wake of its high-profile spurning of ADM so early in its first term.

Earlier this month, for example, the Australian government relaxed restrictions on state-owned Yanzhou Coal Mining Co’s (NYSE: YZC, Hong Kong: 1171) stake in its Australian subsidiary Yancoal Australia Ltd (ASX: YAL). Under a previous agreement with the government, Yanzhou was supposed to decrease its stake in Yancoal to 70 percent, but now Yanzhou is allowed to eventually assume full ownership of its subsidiary.

And late last week, Treasurer Joe Hockey approved State Grid Corp of China’s AUD7.5 billion acquisition of key electricity, gas, and water distribution and transmission assets, which makes it the biggest deal of the year in Australia.

While a deal of this size by a state-owned enterprise might ordinarily invite considerable regulatory scrutiny, these assets were owned by Singapore Power, which means they’re essentially trading hands from one state-owned enterprise to another. The acquisition of the assets of the two Singapore Power subsidiaries involved in the transaction is conditional on at least half of the directors appointed by State Grid being Australian citizens who currently reside in the country.

In his announcement, Mr. Hockey asserted, “Australia is open for business and we welcome foreign investment when it is not contrary to the national interest.” The defensive tone, in general, and the language in the latter half of this statement, which hearkens back to Mr. Hockey’s dismissal of ADM, suggest again that the government is still smarting from the uncertainty engendered by its GrainCorp decision.

While it seems pretty clear, at this point, that the government will look favorably upon deals involving foreign investment by major firms domiciled in countries with which it’s pursuing trade negotiations, the process is more opaque when that’s not the case. And that’s prompted HSBC Chief Economist Paul Bloxham, a former official with the Reserve Bank of Australia, to say that the government is sending mixed messages.

According to The Sydney Morning Herald, Mr. Bloxham said, “Foreign investors need to know which assets are accessible and which are not . . . There needs to be a focus of clarity and consistency of the message so foreign investors know how they can get involved in the Australian economy.”

As Mr. Bloxham proceeds to note, Australia is reliant on foreign capital, and the government’s ad-hoc approach to decision-making thus far could be a deterrent to future investments by foreign firms. The government seems to have gotten this message, but it will take careful communication as well as deeds to persuade foreign firms that this is the case.