Australia Misses the Wood for the Trees

By Daryl Guppy

The Australian Federal Government recently vetoed two Belt and Road memorandums of understanding（MOUs） signed between the state of Victoria and Chinas National Development and Reform Commission.

Foreign Affairs Minister Marise Payne said the arrangements were considered to be “inconsistent with Australias foreign policy or adverse to Australias foreign relations.”

Newly appointed Defense Minister Peter Dutton thundered that “China and others need to understand that Australia is not going to be bullied and were standing up for our beliefs.”

The reactions seem a bit over the top when the MOUs did not actually commit Victoria to specific projects and were not legally binding. They were only about potential future cooperation.

Australia is well aware of the disruption this announcement would cause and the way this decision would further chill bilateral relations. There are some in the federal government who welcome this attack. There is an active cohort of hawks who want to contain and confront China.

In this sense， this announcement serves an Australian foreign policy agenda that very much takes its lead from the United States. Though this doesnt mean following every step the U.S. takes， particularly under former President Donald Trump， it does mean that Australia looks to the U.S. for guidance and support.

This was the key message Australia took from the China-U.S. high-level strategic dialogue， in Anchorage， Alaska in the U.S.， in March， where the U.S. reportedly brought up“Chinas treatment of Australia.”

Australia interpreted U.S. Secretary of State Antony Blinkens comments in Anchorage to mean that the United States has Australias back. Basking in this sunshine， it was perhaps inevitable that an emboldened Australia would take the next step and veto the MOUs.

There is another aspect of this foreign policy as it relates to international relations rather than just relations with China. Australia has aspirations to play a leadership role in the newly created Regional Comprehensive Economic Partnership （RCEP）， the free trade agreement signed by 15 economies including China and Australia.

However， Australias rejection of the Belt and Road Initiative puts it out of step with many of the RCEP and Association of Southeast Asian Nations （ASEAN） members， who are all signatories to the RCEP. These are countries that have actively embraced the initiative and see this as a way to increase their engagement with China. They are wary of Australias less than nuanced approach to China.