China angry as Victoria's 'Belt & Road' infrastructure deal is scrapped

Daniel Andrews and Chinese Ambassador to Australia Cheng Jingye

Victorian Premier Daniel Andrews and Chinese Ambassador to Australia Cheng Jingye signed the Belt and Road agreement in 2018. Source: AAP

The Australian government has exercised its veto powers to cancel two agreements negotiated with China by Victoria, saying it is acting to protect the national interest.


Concerns over foreign interference have led to the creation of the federal government's new veto law, the Overseas Regulatory Scheme, which went into effect last year in December.

In particular, concerns have been raised about Victoria's 2018 and 2019 deals with China on global infrastructure and its development strategy, the Belt and Road initiative.

The power of veto allows the Minister of Foreign Affairs to cancel agreements negotiated with foreign countries by Australian countries that are considered contrary to Australian foreign policy.

In the first exercise of power, four agreements negotiated by the Victorian government were vetoed. Two deals with China, a deal with Iran and Syria.




 


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