A deal allowing the Australia state of Victoria to join China's Belt and Road initiative will likely be vetoed by the coalition government of prime minister Scott Morrison.
Australia passed the Foreign Relations Bill on Thursday. This law gives the Australia federal government powers to cancel agreements by state and territory governments, local councils and public institutions with foreign governments such as China.
It establishes a public register where arrangements will have to be disclosed and reviewed by the foreign minister.
The foreign minister can terminate any agreement, such as Victoria's Belt and Road deal, if they are considered to hinder or harm Australia's foreign relations or are inconsistent with foreign policy.
The law will be retrospective and will subject to federal government review at least 130 agreements states and government entities have struck with 30 different countries.
"Australia's policies and plans, the rules that we make for our country are made here in Australia according to our needs and our interests," Morrison said. He said Australia's foreign policies and relationships "must always serve Australia's interests"
"One of the most important jobs of the federal government is to protect and promote Australia's national interest," he said.
Morrison, however, said the law wasn't aimed at any specific country but is widely seen by analysts as directed against China.
Excluded from the law are deals involving commercial corporations and state-owned enterprises along with foreign universities unless they are arms of a foreign government such as military colleges.
Morrison has been a critic of Victoria's deal with China since it was made in 2018. He declined to comment on whether Victoria's deal will be vetoed.
The deal has angered many in the coalition worried about creeping Chinese influence in Australia. It also drew the ire of U.S. Secretary of State Mike Pompeo who said Victoria's deal increased the China government's ability to "do harm."
On the other hand, Victoria premier Daniel Andrews insists the deal is designed to boost the Victorian economy and jobs.
