Belted, but still on the road

THE cancellation of Victoria’s Belt and Road agreement will not derail plans for the biggest road project in the state’s history, despite China warning Scott Morrison’s decisive intervention will hurt Australia.

Chinese-owned construction companies feature in the final two consortia in the running to deliver the $15.8bn North East Link, including China’s top Belt and Road building giant.

But they have already sought foreign investment approval and assured the Andrews government their bids will not be affected by the Prime Minister’s cancellation of the deal that linked Victoria to the Communist Party’s trillion-dollar infrastructure initiative.

The Chinese government lashed out at the “unreasonable and provocative move” after the agreement — signed by Daniel Andrews in 2018 to boost co-operation on infrastructure projects — was torn up on Wednesday night.

“It further shows that the Australian government has no sincerity in improving China Australia relations,” a Chinese embassy spokesman said. “It is bound to bring further damage to bilateral relations, and will only end up hurting itself.”

But the PM was unmoved by the criticism, declaring: “Australia under our government will always protect Australia’s national interest.”

The Premier and some of his ministers have been outspoken about the federal government’s handling of the relationship with China, and Mr Andrews attacked Mr Morrison last year over the laws he created to scrap the Belt and Road deal. On Thursday, however, the Andrews government responded diplomatically to the cancellation.

“The federal government has made a decision (and) they’ve made it absolutely clear,” Employment Minister Jaala Pulford said.

“I can only assume the federal government, in doing so, gave consideration to the consequences of their actions.”

Ms Pulford said it remained “incredibly important” for Victorian businesses to participate in the global market.

The Geelong Advertiser revealed last year that the North East Link — connecting the Eastern Freeway and the M80 Ring Road — could be jeopardised by the commonwealth’s Belt and Road crackdown, especially if Victoria selected the bid featuring China Construction Oceania.

But an Andrews government spokeswoman said on Thursday the project timeline remained unaffected and it was on track to open in 2027.