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Australia Cancels Two Belt and Road Agreements With China

 In a move that will further strain relations between the two countries, Foreign Minister of Australia Marise Payne announced that agreements between the state of Victoria and China under Belt and Road initiative will be canceled.

The statement released by Australia’s Department of Foreign Affairs and Trade (DFAT) on April 21 said these arrangements are “inconsistent with Australia’s foreign policy or adverse to our foreign relations” as per the Australia’s Foreign Relations (State and Territory Arrangements) Act 2020.

The two agreements cancelled include Memorandum of Understanding between the Government of Victoria and the National Development and Reform Commission (NDRC), China on Cooperation within the Framework of the Silk Road Economic Belt and the 21st Century Maritime Silk Road Initiative. It was signed in October 2018. Another cancelled agreement is Framework Agreement between the Government of Victoria and the NDRC, China on Jointly Promoting the Framework of the Silk Road Economic Belt and the 21st Century Maritime Silk Road. It was signed in October 2019.

Two agreements, one each with Syria and Iran, have also been cancelled.

Australia has launched Foreign Arrangements Scheme December 10, 2020 which requires states and territories, local governments, and Australian public universities to notify the DFAT of existing and proposed foreign arrangements. Thousands of agreements have been notified to DFAT under the scheme.

Speaking to ABC radio’s AM programme, Mr Marise Payne said, “This scheme is very focused on Australia’s national interest. It’s about ensuring consistency of our foreign relations across Australia and it’s most certainly not aimed at any one country.”

China has expressed “strong dissatisfaction” and “firm opposition” to the move.

“The Australian side says its decision is not targeted at any country, but that claim simply doesn’t hold water,” said China’s Foreign Ministry Spokesperson Wang Wenbin in a statement.

He further added, “The Australian side undermined the bilateral relations time and again. What it did this time is another testimony that Australia lacks basic sincerity to improve the ties. We urge Australia to revoke the wrong decision and change course immediately, stop irresponsible moves, and avoid imposing groundless restrictions on normal exchanges and cooperation between the two countries.Otherwise China will resolutely  take strong reactions.”