Australia on Wednesday announced it would revoke a major state’s participation in China’s Belt and Road Initiative, after deeming its agreements with Beijing to be at odds with Canberra’s foreign policy.
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.
Sino-Australian relations have sunk to their lowest point in decades since Canberra last April called for an international inquiry into the Covid-19 pandemic.
