Rogue Australian state Victoria’s Belt and Road deal with China eyes ‘unimpeded trade’, but experts say it wasn’t wise to sign up
- Memorandum of understanding lays out plans for connectivity of policy, infrastructure, trade, finance and people
- Experts say it may be ‘unconstitutional’ for a state or territory to sign such a pact
The Victorian government has bowed to pressure and released its agreement with China on the Belt and Road Initiative as experts warn that the decision to sign on could be unconstitutional.
The state is the first in Australia to sign up to the Chinese president Xi Jinping’s signature global trade and infrastructure programme, earning a rebuke from Prime Minister Scott Morrison.
The four-page memorandum of understanding states Victoria and China will work together to “inject new momentum” to achieve common development and promote connectivity of policy, infrastructure, trade, finance and people.
Businesses and organisations on both sides will develop long-term partnerships, the document says. The parties will enhance policy cooperation and “unimpeded trade”. The agreement is not legally binding and expires in five years.
