Australia axes Victoria state’s belt and road pact with China, amid icy ties with Beijing
- While agreements on scientific cooperation between Victoria and organisations in Iran and Syria were also cancelled, analysts say Canberra’s target is Beijing
- The Foreign Arrangements Scheme was introduced after months of tensions between Canberra and Victoria’s premier over how to manage ties with China
Foreign Minister Marise Payne said she had cancelled a non-binding memorandum of understanding and “Framework Agreement” signed between the state of Victoria and China’s National Development and Reform Commission in 2018 and 2019.
Payne also cancelled an MOU and agreement on scientific cooperation between Victoria’s Department of Education and Training and its counterpart organisations in Iran and Syria.
Payne said the deals were “inconsistent with Australia’s foreign policy or adverse to our foreign relations” under legislation passed last year that gave the top diplomat veto powers over deals signed between foreign countries and subnational authorities such as state governments, local councils and publicly-funded universities.
While not officially targeted at a particular country, the law’s introduction followed months of tensions between Canberra and Victorian Premier Daniel Andrews and his government over how to manage relations with Beijing.
In response, China’s embassy in Australia said Canberra’s decision was “bound to bring further damage to bilateral relations” as it voiced “strong displeasure and resolute opposition” to the move.
Former Home Affairs Minister Peter Dutton last year accused the Victorian state government of taking part in a “propaganda exercise” on behalf of Beijing, after Victoria’s treasurer warned that Canberra’s stance on China was hurting Australian exporters.