- The Morrison government plans to veto any deal made between Australian and overseas interests that doesn’t align with foreign policy
- Under the proposed law, state and local governments, as well as public universities and other bodies, would be unable to sign deals with foreign entities without government approval
- The law will also apply retroactively, meaning initiatives such as the Victorian government’s memorandum of understanding with China for its Belt and Road scheme could be sunk
- The Prime Minister insists the legislation is not aimed solely at China, but rather will work “to protect and promote Australia’s national interest”
- It remains to be seen exactly how the new powers will be deployed if the legislation passes parliament
The Morrison government has announced plans to veto any deal made between Australian and overseas interests that doesn’t align with foreign policy.
United front
Under the proposed law, state and local governments, as well as public universities and other bodies would be unable to sign deals with foreign entities without government approval.
The law will also apply retroactively, meaning initiatives such as the Victorian government’s memorandum of understanding with China for its Belt and Road scheme could be sunk.
The Prime Minister says the new legislation will create a single foreign policy framework, which will solidify the currently fractured patchwork of deals and understandings between different entities.
“It is vital that when it comes to Australia’s dealings with the rest of the world, we speak with one voice and work to one plan,” Mr Morrison said.
“These changes and new laws will ensure that every arrangement done by any Australian government at any level now lines up with how we are working to protect and promote Australia’s national interest,” he added.
How it will work
The government is planning to pass the legislation before the end of the year.
State and local governments and public bodies will then have six months to register their foreign interests.
Those submissions will be assessed by a new arm of the Department of Foreign Affairs and Trade, and either approved or vetoed by the Foreign Minister.
No further specifics of the decision-making process have yet been laid out, except that any deal deemed to be contrary to the ‘national interest’ will be cancelled.
The new legislation will exclude corporations and state-owned businesses.
Don’t mention the (trade) war
While the PM remains insistent the legislation is aimed at aligning Australia’s foreign policy across all levels of government, it seems to be aimed squarely at China.
Tensions have been mounting in recent months as China and Australia trade veiled blows.
Wine, beef and barley exports have been affected, while Australia has hit back with demands for an inquiry into China’s response to the COVID-19 outbreak.
The new legislation will give the government the capacity to sink Victoria’s Belt and Road deal, which is viewed by the Morrison government and his U.S. counterparts in the Trump administration as a threat to Western sovereignty.
It will also allow for intervention into local government arrangements with foreign entities, which have increasingly come under scrutiny as a subtle and subversive means of Chinese infiltration into the Australian political system.
Universities have also come under the influence of Chinese interests, with certain funding arrangements and huge numbers of students bringing big money to the sector’s bottom line.
It remains to be seen exactly how the new powers will be deployed if the legislation passes parliament.