PM’s unprecedented crackdown on China’s influence

Prime Minister Scott Morrison is set to unveil an unprecedented crackdown on Chinese influence, with new powers reaching all the way down to state and local government and universities.

In unprecedented laws aimed squarely at cracking down on Chinese influence, any agreements entered into by councils, state governments and universities with foreign countries must be vetted by the foreign affairs minister, who will also have the power to tear up any existing contracts.

It means agreements such as those between the University of Queensland, QUT and Griffith University and Confucius institutes will come under the microscope, and could be scrapped if found to undermine the national interest.

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The laws will extend as far down as sister city agreements entered into between councils, as Prime Minister Scott Morrison stresses it is vital Australia “speaks with one voice”.

New laws vetting agreements councils, state governments or universities with foreign powers are targeted at Chinese influence.

There have been increasing concerns over Chinese foreign influence from Australian intelligence and security agencies in recent years, amid warnings that there are more spies active on domestic soil than during the Cold War.

There are more than 200 agreements the Federal Government is already aware of between foreign entities and State Government, council and universities.

Once the legislation is passed governments and universities will have six months to provide a stocktake of any such agreements which will then be listed on a public register.

Victoria’s agreement on China’s Belt and Road Initiative is one agreement expected to come under heavy scrutiny.

Any future arrangements will need Canberra’s permission before negotiations begin and approval before they are signed, while approval can later be revoked.

While aimed at limiting China’s foreign influence capabilities, it will not be limited to this, with agreements with Iran, Russia, Vietnam, India and others all to come under the proposed laws.

Premiers were briefed about national security concerns caused by some of these type contracts at a recent briefing with the Prime Minister.

Mr Morrison said the Federal Government set foreign policy and the proposed laws would ensure every arrangement from any Australian government would line up with the national interest.

“Where any of these agreements undermine how the Federal Government is protecting and promoting our national interests they can cancelled,” he said.

Prime Minister Scott Morrison says all Australian governments must speak with one voice on foreign affairs. Picture: Gary Ramage/NCA NewsWire

“It is vital that when it comes to Australia’s dealings with the rest of the world we speak with one voice and work to one plan.”

The laws would cover any foreign arrangements that are legally binding under Australian law, foreign law and non-legally binding agreements like Memorandums of Understanding, but exclude commercial corporations and state-owned enterprises.

The test that will apply will be if the arrangement “adversely affects Australia’s foreign relations” or if it is “inconsistent with Australian foreign policy”.

Foreign Minister Marise Payne said there was currently no requirement for states or universities to consult with the Commonwealth on arrangements with foreign powers.

“It is vital for Australia’s prosperity, security and sovereignty that our foreign policy is driven by our national interest,” she said.