SYDNEY - Australian Prime Minister Scott Morrison wants to enable the federal government to cancel state and university deals with foreign governments in a move that appeared to be aimed at China and is set to further inflame tensions with Beijing.
Mr Morrison said on Thursday the federal government was responsible for setting Australia's foreign policy and should ensure that other Australian authorities cannot undermine Canberra's efforts to pursue the national interest. But he insisted the laws were not specifically aimed at China. Australia's ties with China, its largest trading partner, have deteriorated in recent years, particularly as Canberra introduced laws to prevent foreign interference and banned Chinese firm Huawei from participating in its 5G rollout. Relations further declined this year when Mr Morrison called for an inquiry into the origins of the Covid-19 pandemic - a move that appeared to be targeted at Beijing.
Earlier this week, for instance, the Government confirmed it had blocked an A$600 million deal to sell a dairy business, Lion Dairy and Drinks, to Chinese firm China Mengniu Dairy, saying the sale was"contrary to the national interest."
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