Foreign relations bill set to pass despite angering Beijing

China is set to be angered as the federal government pushes ahead with its foreign relations bill, but Labor has slammed the legislation as ‘half-baked’.

A proposal that outraged Beijing is set be made law, with parliament expected to green light federal powers to scrap deals with foreign countries.

The government will attempt to pass its foreign relations bill this week, the last sitting week of the year.

Under the legislation, Foreign Minister Marise Payne would be given licence to terminate agreements signed with foreign powers by public universities, state and territory governments or local councils.

The legislation’s significance was raised after it was listed as one of Beijing’s 14 grievances with Australia leaked last month.

The powers would apply to already existing deals, meaning the Victorian government’s contentious Belt and Road initiative signed with Beijing could be scrapped.

Victoria’s controversial Belt and Road initiative could be scrapped under the laws. Picture: NCA NewsWire / Daniel Pockett

The federal government has been critical of the agreement, but Trade Minister Simon Birmingham stressed the new laws were not designed to specifically target China.

“It wouldn’t exactly be methodically going through things in good faith if I was to say that there was an automatic predisposition to tear it up,” he told the ABC.

“We will go through the proper processes … not just for this agreement but the majority of agreements that exist between the states and territories and foreign governments … with countries other than China.

“We will go through all of them, whomever they may be with.”

An editorial from Beijing’s mouthpiece the Global Times on Friday stated the legislation showed Australia’s “political paranoia”.

“Australia now seems to be in an abnormal state of political madness and paranoia, with a distorted mindset confusing what is right and what is wrong,” it read.

“The fact that the legislation could be passed in the parliament shows that anti-China forces in Australian political circles are gaining the momentum.”

Beijing has accused Australia of ‘political paranoia’. Picture: Kevin Frayer / Getty Images

Labor’s Defence spokesman Richard Marles said although Labor supported the bill in principle, it was “half-baked” and “rushed out the door”.

“It’s not ready. The consultation hasn’t been done with a whole lot of the entities concerned, particularly the university sector,” he said.

“We would like to sit with the government and actually talk through how we can make this legislation better so that it achieves (its) objectives.

“But again, we’re experiencing frustration because the government is not really here showing the generosity of spirit needed with the opposition which would end up with much better policy.

“We would like the government and Marise Payne to come out of the bunker.”

Richard Marles lashed the bill as ‘half-baked’. Picture: NCA NewsWire / Gary Ramage

The bill comes against a backdrop of rising tensions with Beijing, following the posting of a “repugnant” tweet about Australian soldiers by China’s foreign ministry.

It followed months of trade sanctions imposed by Beijing on Australian goods.

But Scott Morrison last week played down concerns the tense situation would blow the government’s plans off course.

“Australia’s policies and positions have been consistent for decades and certainly under this government and they follow on from many of the positions held by the previous government,” the Prime Minister said.

“What has changed is obviously circumstances, events and the environment.

“Australia’s national interests will remain our national interests, and I have no doubt that (for) the Chinese government, as part of the relationship with Australia, their interests will remain theirs.”

Scott Morrison played down fears the laws could ramp up tensions with Beijing. Picture: NCA NewsWire / Gary Ramage

Secret agreements would be placed on a public register under the legislation, while a foreign interest test would apply to any deal.

Ms Payne would be advised of any implications if an arrangement was found to be inconsistent with Australia’s foreign policy.

If the minister agrees, state entities can be stopped from negotiating, entering, remaining in or giving effect to the agreement with a foreign government or entity.

The minister would also be given the power to seek an injunction in the Federal Court or High Court.

Sister city relationships, tourism and trade co-operation, as well as science and education deals, would all be subject to the review.