London Daily

Focus on the big picture.
Saturday, Jul 12, 2025

Australia Cancels Deals On China's Belt And Road In "National Interest"

Australia Cancels Deals On China's Belt And Road In "National Interest"

The Chinese embassy earlier criticised the move by Foreign Minister Marise Payne to veto two agreements signed by Victoria state as "provocative" and said it would further damage ties with Australia.
Australia said a decision to cancel two accords between Victoria state and China on the Belt and Road Initiative was taken to ensure consistency in foreign relations and was not aimed at any country.

The Chinese embassy earlier criticised the move by Foreign Minister Marise Payne to veto two agreements signed by Victoria state as "provocative" and said it would further damage ties with Australia.

Payne said on Thursday that Australia was a federation and states entering into agreements with foreign governments are now required to consult with the federal government.

"This scheme is very focused on Australia's national interest. Its about ensuring consistency of our foreign relations across Australia and it's most certainly not aimed at any one country," she told ABC radio's AM programme.

Beijing had been notified of the decision before it was made public on Wednesday evening.

Speaking to reporters in New Zealand after meeting with her counterpart Nanaia Mahuta, Payne said Australia sought a clear-eyed and practical engagement with China, particularly as the world emerged from COVID-19.

"We also have to acknowledge that China's outlook, the nature of China's external engagement, both in our region and globally, has changed in recent years, and an enduring partnership requires us to adapt to those new realities," she said.

China is the largest trading partner of New Zealand and Australia.

Mahuta on Thursday repeated comments that New Zealand valued the Five Eyes security alliance - which also includes Australia, Britain, Canada and the United States - but questioned whether it was the right platform for New Zealand to speak out on human rights issues.

The comment, first made on Monday, has been widely interpreted as referring to recent Five Eyes joint statements criticising China.

Payne said the Five Eyes was a vital strategic alliance and Australia sought to deepen cooperation with its partners, who are liberal democracies.

In a joint written statement that did not mention China, Payne and Mahuta said they had "reaffirmed their intent to work together to preserve the liberal international order that has underpinned stability and prosperity in the region, and to foster a sustainable regional balance where all countries- large and small -- can freely pursue their legitimate interests".

They also agreed on the need for coordinated regional and global action on human rights and climate change, the statement said.

Australia's conservative coalition government had declined to agree to a country-level MOU with China on the Belt and Road Initiative. But Victoria Labor Premier Dan Andrews signed an MOU to promote the infrastructure development initiative in 2018 and a framework agreement in 2019, saying it would bring Chinese investment to his state.

Hans Hendrischke from the University of Sydney Business School said the cancellation of the agreements would have minimal commercial impact because no projects had begun.

"It had no legal force and there were no specific deals," he told Reuters.

Diplomatic relations between Australia and China have worsened since Canberra called for an international inquiry into the origins of the coronavirus, prompting trade reprisals from Beijing.

Fitch Ratings said economic co-dependencies between

Australia and China will restrain Beijing from targeting major exports such as iron ore.
Newsletter

Related Articles

0:00
0:00
Close
Reparations argument crushed
Rainmaker CEO Says Cloud Seeding Paused Before Deadly Texas Floods
A 92-year-old woman, who felt she doesn't belong in a nursing home, escaped the death-camp by climbing a gate nearly 8 ft tall
French Journalist Acquitted in Controversial Case Involving Brigitte Macron
Elon Musk’s xAI Targets $200 Billion Valuation in New Fundraising Round
Kraft Heinz Considers Splitting Off Grocery Division Amid Strategic Review
Trump Proposes Supplying Arms to Ukraine Through NATO Allies
EU Proposes New Tax on Large Companies to Boost Budget
Trump Imposes 35% Tariffs on Canadian Imports Amid Trade Tensions
Junior Doctors in the UK Prepare for Five-Day Strike Over Pay Disputes
US Opens First Rare Earth Mine in Over 70 Years in Wyoming
Kurdistan Workers Party Takes Symbolic Step Towards Peace in Northern Iraq
Bitcoin Reaches New Milestone of $116,000
Biden’s Doctor Pleads the Fifth to Avoid Self-Incrimination on President’s Medical Fitness
Grok Chatbot Faces International Backlash for Antisemitic Content
Severe Heatwave Claims 2,300 Lives Across Europe
NVIDIA Achieves Historic Milestone as First Company Valued at $4 Trillion
Declining Beer Consumption Signals Cultural Shift in Germany
Linda Yaccarino Steps Down as CEO of X After Two Years
US Imposes New Tariffs on Brazilian Exports Amid Political Tensions
Azerbaijan and Armenia are on the brink of a historic peace deal.
Emails Leaked: How Passenger Luggage Became a Side Income for Airport Workers
Polish MEP: “Dear Leftists - China is laughing at you, Russia is laughing, India is laughing”
BRICS Expands Membership with Indonesia and Ten New Partner Countries
Weinstein Victim’s Lawyer Says MeToo Movement Still Strong
U.S. Enacts Sweeping Tax and Spending Legislation Amid Trade Policy Shifts
Football Mourns as Diogo Jota and Brother André Silva Laid to Rest in Portugal
Labour Expected to Withdraw Support for Special Needs Funding Model
Leaked Audio Reveals Tory Aide Defending DEI Record
Elon Musk Founds a Party Following a Poll on X: "You Wanted It – You Got It!"
London Stock Exchange Faces Historic Low in Initial Public Offerings
A new online platform has emerged in the United Kingdom, specifically targeting Muslim men seeking virgin brides
Trump Celebrates Independence Day with B-2 Flyover and Signs Controversial Legislation
Boris Johnson Urges Conservatives to Ignore Farage
SNP Ordered to Update Single-Sex Space Guidance Within Days
Starmer Set to Reject Calls for Wealth Taxes
Stolen Century-Old Rolls-Royce Recovered After Hotel Theft
Macron Presses Starmer to Recognise Palestinian State
Labour Delayed Palestine Action Ban Over Riot Concerns
Swinney’s Tax Comments ‘Offensive to Scots’, Say Tories
High Street Retailers to Enforce Bans on Serial Shoplifters
Music Banned by Henry VIII to Be Performed After 500 Years
Steve Coogan Says Working Class Is Being ‘Ethnically Cleansed’
Home Office Admits Uncertainty Over Visa Overstayer Numbers
JD Vance Questions Mandelson Over Reform Party’s Rising Popularity
Macron to Receive Windsor Carriage Ride in Royal Gesture
Labour Accused of ‘Hammering’ Scots During First Year in Power
BBC Head of Music Stood Down Amid Bob Vylan Controversy
Corbyn Eyes Hard-Left Challenge to Starmer’s Leadership
London Tube Trains Suspended After Major Fire Erupts Nearby
×