CANBERRA, 03 December, 2020, (TON): Australia’s parliament on Thursday passed legislation giving the federal government power to veto any agreement struck with foreign states, a move likely to anger China and intensify a bitter diplomatic spat between the two countries.

The law allows the Commonwealth to block any agreement between Australian states, councils or institutions and a foreign government, such as a controversial 2018 deal between the state of Victoria and China.

“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,” Prime Minister Scott Morrison told reporters in Canberra.

Morrison has stressed the law is not aimed at any country, but it is widely seen by analysts as directed at China.

Under the terms of the new law, the foreign minister can veto any agreements with foreign governments if they “adversely affect Australia’s foreign relations” or are “inconsistent with Australian foreign policy”.

One deal expected to come under the spotlight is Victoria’s participation in China’s Belt and Road Initiative, which Morrison said weakens the federal government’s ability to control foreign policy.

China’s foreign policy and the rapid modernisation of its military has long unsettled Australian politicians. A turning point occurred in 2017 when Australia banned foreign political donations, with officials warning of “disturbing reports” of Chinese attempts to influence the political process in Canberra.

The following year, Australia became the first country to ban Chinese tech giant Huawei from its 5G network. It also reportedly went on to block 10 Chinese investment deals.

Relations between Australia and China have been frosty for years, but the situation deteriorated rapidly after Australian Prime Minister Scott Morrison in April called for an international inquiry into the origins of the coronavirus pandemic. Beijing has also been angered by Australian criticism of its actions in Hong Kong, Xinjiang, Taiwan and the South China Sea.