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After months of deliberating on state and territory agreements with foreign countries, the Morrison government finally last night moved to axe Daniel Andrews’ Belt and Road Initiative (BRI) with China, announcing that the Memorandum of Understanding and Framework Agreement between Victoria and China would be among four deals canceled under the Foreign Arrangements Scheme.
The other two deals were also Victorian deals: a Kennett government deal with Syria and a Bracks government deal with Iran.
The BRI deals were struck by Andrews after lobbying by a Chinese government-linked foundation — which was itself funded by both the Commonwealth and the Victorian governments. A 2019 World Bank report found that many of the benefits of the BRI would be offset by large debt costs associated with projects, negative net costs for countries where the costs of projects exceeded their benefits, and lack of transparency around project deals. The extensive use of Chinese personnel, rather than local workers, on projects has also been criticised. However, regular western claims that the BRI is driven by a Chinese agenda of “debt trap diplomacy” have been challenged.
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