Victoria’s Belt and Road deal ripped up, threats of retaliation from China

A decision to rip up Victoria’s Belt and Road deal has been met with threats of retaliation. But Defence Minister Peter Dutton has issued a warning.

Australia will not “surrender” to threats of retaliation from China after Victoria’s Belt and Road deal was ripped up.

Defence Minister Peter Dutton issued the warning on Friday before pointing the finger at Premier Daniel Andrews for entering into an agreement that flew in the face of national interest.

“Dan Andrews did the wrong thing,” Mr Dutton told Today.

“We are not going to surrender our sovereignty.

“China and others need to understand that Australia is not going to be bullied.”

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Peter Dutton said Australia has been clear about its values. Picture: NCA NewsWire / Gary Ramage

Foreign Affairs Minister Marise Payne on Wednesday night announced that two Belt and Road agreements would be axed under new laws because they were not in the national interest.

Chinese officials lashed the move as “unreasonable and provocative”, while Chinese state-owned media said Australia would face “serious consequences” and a potential trade conflict.

“We urge Australia to set aside cold war mentality and ideological bias, view the bilateral co-operation in an objective and rational light,” Foreign Ministry spokesman Wang Wenbin said on Thursday.

“Immediately redress mistakes and change course, refrain from going down the wrong path further, and avoid making the already seriously difficult China-Australia relations worse.”

Mr Dutton said Australia’s relationship with its largest trade partner was important, but it was standing up for its beliefs.

Australia’s relationship with China has been strained. Picture: AAP Image/Lukas Coch

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He said China’s behaviour in the region, including militarisation of bases and cyber attacks, was a “real problem”.

“All of that is not the action of a friend,” Mr Dutton said.

“I want to make sure people hear the message clearly; we are standing up for who we are.

“We are not going to be compromised by the principles of the Communist Party of China.”

Deputy Labor leader Richard Marles said the relationship with China was difficult, as Australia had become more dependant on trading with China under the Coalition’s leadership.

“This is something that needs to be properly managed,” Mr Marles said.