China berates Australia’s scrapping of BRI deal; says 'provocative' move deteriorates ties

China on Saturday berated Australia’s decision of reversal from Beijing's flagship Belt and Road Initiative. It said that Canberra’s ‘provocative’ decision last week has deteriorated relations between the two nations even further. Calling Australia’s scrapping of the deal a “negative move,” China's top diplomat in Canberra, ambassador Cheng Jingye, said Australia’s economic coercion,  cancelling the deal that the state of Victoria refused, was an act ‘out of line’. Australia’s Foreign Minister Marise Payne announced this past Wednesday that the federal government was overriding the Victorian state government’s agreement to sign up for the China-proposed Belt and Road Initiative (BRI) due to national security reasons. The move plummeted Australia and China’s already soured bilateral relations to a new low as Beijing warned Australia “to rectify its wrong decision.” 

Ambassador Cheng Jingye told business leaders in a video address earlier this week, that Australia's perception of China as a "threat and challenge" had hurt the bilateral relations. What China has done is only aimed to uphold its legitimate rights and interests, prevent bilateral ties from further plunging, and move them back onto the right track, Cheng said.

Foreign Ministry spokesman Wang Wenbin told a state news conference that China disapproved of Australia’s posturing and abrupt reversal of the deals. China has lodged stern representations with Australia, he said, adding that Australia's “political manoeuvring and unreasonable practice are vile in nature,” state-run newspaper China Daily reported. China also accused Australia of trying to reverse the “direction of the wheel of history.” Wang further stated that Australia had undermined China’s credibility with its latest move, and has damaged bilateral relations. He also said that Australia must “stop making irresponsible remarks” and refrain from arbitrarily hampering cooperation. "It is bound to bring further damage to bilateral relations and (the country) will only end up hurting itself," The Chinese embassy in Canberra said in a statement. 

The BRI is an initiative for economic cooperation, which follows the principle of extensive consultation, joint contribution, and shared benefits, and upholds the spirit of openness, inclusiveness, and transparency. It has brought tangible benefits to the participating parties.

The BRI cooperation between China and the Victoria state is conducive to deepening economic and trade relations between the two sides, and will promote economic growth and the well-being of the people of Victoria, the Chinese embassy in Canberra argued in a statement. 

Australia says deal a threat to 'national security

In response to China’s remarks, Australian Foreign Minister Marise Payne clarified that the agreements were cancelled under Australia's Foreign Arrangements Scheme which has been operational since Dec 10, 2020. Under the scheme, the Australian federal government reserved the right to intervene in state affairs and cancel a deal it did not deem in favour of its national interest and security. Australia argued that earlier it had also scrapped deals between the Victorian government and Iran, and a separate agreement with Syria. "I consider these four arrangements to be inconsistent with Australia's foreign policy or adverse to our foreign relations in line with the relevant test in Australia's Foreign Relations Act,” Australia’s Payne explained. Australia has reportedly revoked at least two accords signed by Victoria state to join the Belt and Road Initiative with China. 

Morrison's government described the BRI deal as "inconsistent with Australia's foreign policy or adverse to our foreign relations". In a radio interview on Friday, the Australian PM said that in relation to the Port of Darwin in Australia, if there is "any advice that I receive from the Department of Defence or intelligence agencies that suggest there are national security risks there, then you would expect the government to take action on that."