The Morrison government will risk a further deterioration in the relationship with China this week by forging ahead with legislation enabling it to veto new and existing agreements between a foreign power and state governments, local councils or universities.

The push on the foreign relations bill, which could see Victoria's Belt and Road deal with Beijing unravelled, coincides with Australia expressing hope that with Joe Biden in the White House, some of the temperature may come out of Canberra's relationship with China.