CANBERRA, Australia: The Australian government has drafted new laws that would cancel international deals struck by lower tiers of governments with foreign states that are not in Australias interests, a minister said on Thursday in a move likely to increase tensions with China.
Victoria states memorandum of understanding with Beijing under Chinas belt and road initiative, signed two years ago to attract more Chinese infrastructure investment, is among the deals to be reviewed, Foreign Minister Marise Payne said.
But the legislation to be introduced to Parliament next week did not target China, she said.
The Australian government had already identified 135 agreements with more than 30 countries that needed to be reviewed, she said.
Most Australians would agree that its important that engagements are consistent with Australias national interests and with our foreign policy, Payne told Nine Network television.
Its consistent with protecting Australias national interests and determining what is important for us to pursue, she added.
The legislation would give Payne power to scrap international deals struck by state governments, public institutions such as universities and at local government level, sister-city partnerships.
Future deals would need federal government approval and could be revoked later.
The Foreign Relations Bill was announced days after the government revealed it had blocked the $430 million sale of a major dairy business, Lion Dairy and Drinks, to China Mengniu Dairy Co. on the grounds that it would be contrary to the national interest.
The government intervention was unusual in that it did not prevent an Australia-owned company from being taken over by a foreign company. Australia had instead blocked the transfer of ownership of an Australia-based asset from one foreign company, Japans Kirin Holdings Co., to a Chinese company.
The Victoria government agreement with Beijing has raised concerns among federal government lawmakers that it could increase Chinese interference in Australias second-most populous state.
Peter Jennings, executive director of the Australian Strategic Policy Institute think tank, said the Victorian deal with Beijing should be overturned.
That was something that the Victorian government pursued quite openly against the stated interests of the federal government and the opposition … that Australia was not going to commit itself to those types of arrangements, Jennings told Australian Broadcasting Corp.
I just dont see that that is something that should be sustainable, Jennings added.
James Laurenceson, director of University of Technology Sydneys Australia-China Relations Institute, questioned whether the proposed legislation was an overreaction.
We know the Australian government has been running a very tough line on China, thats been consistent and it hasnt been effected by the belt and road memorandum of understanding at all, Laurenceson said.
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