Australian Prime Minister Scott Morrison seeking veto powers over China deals
Australian Prime Minister Scott Morrison
The Australian government has proposed a lawthat would give the federal government powers to cancel any agreements local authorities and public institutions make or have made with foreign governments.
While experts believe that themove aimed primarily atcurbing infiltration by China. Australian Prime Minister said"These laws are aboutAustralia's national sovereign interests."
The new legislation comes as Canberra seeks to curtail Beijing's influence inAustraliaamid concerns over issues including trade and security, but Morrison denied the new law was designed with China specifically in mind.
Under the new law, the country's foreign minister would be able to cancel any agreements made by state and territory governments, local councils or public universities with foreign administrations if they "adversely affectAustralia's foreign relations" or are "inconsistent withAustralian foreign policy".
The legislation will also be retrospective, and Morrison saidAustraliais aware of 130 agreements that government entities have struck with 30 different countries.
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One of these deals includesAustralia's second most populous state signing up to China's Belt and Road Initiative in 2018, a decision Morrison criticised at time.
Relations betweenAustraliaand its largest trading partner have become increasingly strained, withAustraliaangering China by calling for an international investigation into the origins of the coronavirus and blocking a recent agricultural deal.
China has targetedAustralian exports of wine, barley and beef, and told its students and tourists to avoid travelling toAustralia, citing racial discrimination.
China buys more than one-third ofAustralia's total exports, and sends more than a million tourists and students there each year.
On Wednesday, one of China's most senior diplomats inAustraliasaid there was a "shadow" over the bilateral relationship.
The new legislation excludes commercial corporations and state-owned enterprises, althoughAustraliahas already given regulators and the treasurer additional powers to reject foreign takeovers of private companies.