World

Australia moves to rein in states’ deals with China

Future deals will now need government approval and existing agreements can be declared invalid or terminated

Updated 5 years ago · Published on 08 Dec 2020 2:35PM

Australia moves to rein in states’ deals with China
New federal powers to terminate existing and future deals ‘where they adversely affect’ national interest come as Australia and China compete over trade, claims of influence in the Pacific  – Pixabay pic, December 8, 2020

SYDNEY – Australia’s government can veto agreements that state authorities and universities ink with foreign countries under new legislation passed Tuesday, taking square aim at controversial deals with Beijing.

The new federal powers to scupper existing and future deals “where they adversely affect” the national interest come as China and Australia are at loggerheads over trade and competing claims of influence in the Pacific.

“This legislation is necessary to appropriately manage and protect Australia’s foreign relations and the consistency of our nation'’ foreign policy,” said foreign minister Marise Payne. 

Under Australia’s constitution, the federal government is responsible for foreign affairs and defence. States typically deliver services such as health and education but in reality there is frequent overlap.

Future deals will now need government approval – in some cases before negotiations can even begin – and existing agreements can be declared invalid or terminated.

The new rules call into question Victoria state’s support for China’s “Belt and Road Initiative” – a vast network of projects that offers Beijing sizeable geopolitical and financial leverage.

Prime Minister Scott Morrison has been highly critical of a Victoria-China memorandum of understanding, and local media have quoted government officials as saying the deal is now “probably toast”. 

Also in doubt is the presence of Chinese-government-backed Confucius Institutes at Australia’s public universities which critics say promote the Communist Party’s self-serving version of Chinese culture and history.

The laws do not cover commercial deals and do not specifically name any single country.

But there is widespread unease in Australia at China’s growing influence and Canberra has banned state-linked telecoms giant Huawei from building Australia's 5G network.

It has also tightened foreign investment laws for corporations and created a register of foreign-paid lobbyists, with the attorney general writing to universities and Confucius Institutes on the issue.

Tensions spiked in April when Australia infuriated China by calling for an independent probe into the origins of the coronavirus pandemic, which emerged in the Chinese city of Wuhan late last year. – AFP, December 8, 2020

Related News

Events / 1w

Penang CM leads investment, trade mission to the US

Malaysia / 2w

PM Anwar loses beloved elder brother; Idrus Ibrahim passes away

Malaysia / 2w

Anwar asks Loke to reconsider resignation over Najib pardon

Malaysia / 3w

Share economic benefits equitably, reduce toxic politics of race and religion, says Guan Eng

Malaysia / 3w

MCMC investigates Anthropic's alleged manipulation of Malaysian politics using AI

Malaysia / 4w

Penang-born woman dies in Perth after alleged domestic violence assault

Spotlight

Malaysia

Nhaveen murder trial: Accused admits taunting victim but denies fatal assault

Malaysia

MCMC probes alleged AI sexual abuse targeting Kedah pupils, teachers

Malaysia

Anwar checks final preparations for Budget 2027

Malaysia

Sarawak election could be called within weeks of Budget 2027

Malaysia

Anwar contacts Prabowo over ‘alarming’ transboundary haze

Malaysia

King calls for schools in haze-hit areas to close

Malaysia

Parents worry over children’s exposure as haze worsens

By Alfian Z.M. Tahir

You may be interested

World

US to livestream Nidal Hasan’s firing squad execution on December 3

World

59,275 hotspots turn South Sumatra into haze hotspot as respiratory cases surge

World

Explosions rock Riyadh airport as Yemen’s Houthis claim missile attack

World

Indonesia forest fire hotspots plunge 67%, but haze and dry weather risks persist

World

AI agents used in cyberattacks targeting South Korean banks, CrowdStrike says