Angry response from China after Australia scraps Belt and Road Initiative

China has furiously responded to the news that Canberra has scrapped a major investment deal, slamming Australia as “unreasonable”.

Prime Minister Scott Morrison has scrapped Victoria’s controversial Belt and Road Initiative (BRI) deal with China, calling it “inconsistent with Australia’s foreign policy”.

The decision made late on Wednesday night threatens to inflame already fraught diplomatic tensions between Canberra and Beijing.

Deploying Australia’s powerful new veto powers under legislation passed last year for the first time, the Federal Government ended the deal, warning it was against Australia’s interests.

“I consider these four arrangements to be inconsistent with Australia’s foreign policy or adverse to our foreign relations in line with the relevant test in Australia’s Foreign Relations (State and Territory Arrangements) Act 2020,’’ Foreign Minister Marise Payne said.

“I will continue to consider foreign arrangements notified under the Scheme. I expect the overwhelming majority of them to remain unaffected. I look forward to ongoing collaboration with states, territories, universities and local governments in implementing the Foreign Arrangements Scheme.”

China hits back at Australia

China quickly hit back at Australia over what it called an “unreasonable and provocative move”.

In a statement, a Chinese Embassy spokesman slammed the decision which is expected to plunge the fractured relationship into greater acrimony.

“We express our strong displeasure and resolute opposition to the Australian Foreign Minister’s announcement on April 21 to cancel the Memorandum of Understanding on Cooperation within the Framework of the Belt and Road Initiative and the related Framework Agreement between the Chinese side and Government of Victoria,” the spokesman said.

“This is another unreasonable and provocative move taken by the Australian side against China. It further shows that the Australian government has no sincerity in improving China-Australia relations. It is bound to bring further damage to bilateral relations, and will only end up hurting itself.”

A formal agreement has been cancelled so easily. Australians, is your country a uncivilized rogue that deserves stern admonition and punishment? https://t.co/1VmZ3oVBwa

— Hu Xijin 胡锡进 (@HuXijin_GT) April 21, 2021

China argues the BRI is an initiative for economic co-operation.

“The BRI co-operation between China and the Victoria state is conducive to deepening economic and trade relations between the two sides, and will promote economic growth and the wellbeing of the people of Victoria,” the spokesman said.

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Foreign Affairs Minister Marise Ann Payne said the arrangements were ‘inconsistent with Australia’s foreign policy’. Picture: NCA NewsWire / Martin Ollman

The declaration is likely to deliver the biggest flashpoint to China-Australian relations since a bitter war of words broke out last year over a fake image showing an Australian soldier holding a knife to the throat of an Afghan child in reference to war crimes allegations against SAS troops.

Hours after the announcement, China posted its first reply through its mouthpiece, The Global Times, saying it “resolutely opposes” the move.

Global Times editor-in-chief Hu Xijin wrote on Twitter: “A formal agreement has been cancelled so easily. Australians, is your country a uncivilised rogue that deserves stern admonition and punishment?”

Chinese Embassy in #Australia said on Wed that it resolutely opposes Canberra's move to cancel a Belt and Road Initiative deal between Victoria and China, calling it another "unreasonable and provocative" move against #China that will hurt Australia itself. pic.twitter.com/fkyIXad4tP

— Global Times (@globaltimesnews) April 21, 2021

China’s foreign ministry spokesman Lijian Zhao shared the computer-generated image on Twitter last year writing: “Shocked by murder of Afghan civilians and prisoners by Australian soldiers. We strongly condemn such acts, and call for holding them accountable.”

Mr Morrison slammed the “repugnant” post and said he has asked China and Twitter to remove it. They never did. But he was also widely criticised for taking China’s “bait” and over reacting to the tweet by a relatively junior diplomat.

“The Chinese government should be totally ashamed of this post. It diminishes them in the world’s eyes,” Mr Morrison said at the time.

“It is a false image, and a terrible slur on our great defence forces.”

The move is likely to be the biggest flashpoint to China-Australian relations since a war of words last year over a fake image showing an Australian soldier holding a knife to the throat of a child.

In a statement, Foreign Minister Marise Payne said three agreements were being terminated under the new laws that included scrapping the Belt and Road deal included:

• Memorandum of Understanding between the Department of Education and Training (Victoria) and the Technical and Vocational Training Organisation, Ministry of Labour and Social Affairs, the Islamic Republic of Iran, signed 25 November 2004.
• Protocol of Scientific Cooperation between the Ministry of Higher Education in the Syrian Arab Republic and the Ministry of Tertiary Education and Training of Victoria, signed 31 March 1999.
• Memorandum of Understanding between the Government of Victoria and the National Development and Reform Commission of the People’s Republic of China on Cooperation within the Framework of the Silk Road Economic Belt and the 21st Century Maritime Silk Road Initiative, signed 8 October 2018.
• Framework Agreement between the Government of Victoria and the National Development and Reform Commission of the People’s Republic of China on Jointly Promoting the Framework of the Silk Road Economic Belt and the 21st Century Maritime Silk Road, signed on 23 October 2019.

Victorian Premier Daniel Andrews blindsided the Federal Government when he signed the Belt and Road deal. Picture: NCA NewsWire / Andrew Henshaw

Victorian Premier Daniel Andrews blindsided the Federal Government when he first signed the Belt and Road deal with the Chinese government in 2018.

It outlined a memorandum of understanding to take part in the $1.5 trillion infrastructure program, which is widely viewed as a global power play by Chinese Communist Party and a national security threat.

The states had previously been offered a deadline of March 10 to inform the Commonwealth of their deals with foreign governments.

“I haven’t seen the benefits of it,” Mr Morrison said earlier this year. “If there are benefits, what are they and what was paid for them? I don’t have the answers to those questions at this point, but the assessment of those arrangements will continue.”

The Victorian Premier, who remains on medical leave had previously defended the deal against allegations it could pose a national security risk.

Labor leader Anthony Albanese has declared his own opposition to the deals pledging Labor would never seek similar agreements.

“Certainly, there shouldn’t be agreements that are inconsistent with Australia’s national interest, or our foreign policy,” Mr Albanese said.

A Victorian government spokeswoman said: “The Foreign Relations Act is entirely a matter for the Commonwealth government.”

“Victoria will continue to work hard to deliver jobs, trade and economic opportunities for our state.”

Relations between China and Australia have been tense since a bitter trade war erupted in 2020.