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Australia Ends China Deals on National Interest Grounds

Associated Press

   CANBERRA, AUSTRALIA - Australia has canceled two Chinese "Belt and
   Road" infrastructure building initiative deals with a state government,
   provoking an angry response from Beijing.

   The bilateral deals with Victoria state were among four vetoed under
   new laws that give the federal government power to overrule
   international agreements by lower-level administrations that violate
   the national interest, Foreign Minister Marise Payne said late
   Wednesday.

   The "Belt and Road" deals struck with Beijing in 2018 and 2019
   triggered the legislative response.

   Victoria Education Department pacts signed with Syria in 1999 and Iran
   in 2004 were also canceled.

   "I consider these four arrangements to be inconsistent with Australia's
   foreign policy or adverse to our foreign relations," Payne said.

   The Chinese Embassy in Australia said in a statement the decision
   "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 uphurtingitself," the embassy said on Thursday, referring to
   the Australian government.

   Global Times, the Chinese Communist Party's English-language
   mouthpiece, said in a headline: "Australia faces serious consequences
   for unreasonable provocation against China."

   The move "marks a significant escalation that could push icy bilateral
   relations into an abyss," the newspaper added.

   Relations at a low

   Australia's bilateral relations with its most important trading partner
   are at their lowest point in decades. Chinese government ministers
   refuse to take phone calls from their Australian counterparts, and
   trade disruptions are widely seen as China imposing economic
   punishment.

   But Payne said Thursday she did not expect China would retaliate.

   "Australia is operating in our national interests. We are very careful
   and very considered in that approach." Payne told Australian
   Broadcasting Corp.

   "It's about ensuring that we have a consistent approach to foreign
   policy across all levels of government, and it isn't about any one
   country," she said. "It is most certainly not intended to harm
   Australia's relationships with any countries."