The Age

In 1979, the year America formally recognised the communist People’s Republic of China, Victoria's then premier, Rupert Hamer, initiated a sister-state relationshipwith the Chinese province of Jiangsu, on the country's east coast. Since then the arrangement has fostered ties in education, the arts, medicine, business, science and technology. But a program in which Victorian businesses and researchers are eligible for grants of up to $200,000 from the state government for joint ventures with counterparts in Jiangsu is in jeopardy under new foreign relations rules introduced by the federal government that give Canberra veto power over such agreements. This has been backed up by Dr Paul Monk, a former head of China analysis in Australia’s Defence Department, who said the Jiangsu program could allow firms linked to the Chinese government to obtain access to Australian intellectual property, and it should be viewed through the prism of President Xi Jinping's recently stated intention, reported by Chinese state media, of increasing his nation's military-industrial strength. Advertisement There is also no getting around the fact that Australia's relationship with China is at its lowest ebb for many years. Beijing has made its displeasure with Australia well known, and Victoria has become part of the dispute. China's recently released 14 grievances with Australia included its unhappiness with the Morrison government’s attempt to “torpedo” Victoria’s Belt and Road deal with the new legislation. RELATED ARTICLE Canberra considers axing Victorian research agreement with China The Age has already stated that, on balance, Victoria needs to accept that its Belt and Road agreement with China should be terminated. For Mr Xi, the Belt and Road program is a signature policy that unites all of China’s efforts to exert influence around the globe. For that reason, it is a key foreign policy issue in an increasingly difficult environment, and Canberra should take the leading role.