Australia has announced that it will cancel the Victorian government's deal to join China's Belt and Road Initiative, saying it is incompatible with the country's foreign policy, AFP reported.

Canberra passed new laws last year that many believe are directed against China. The laws allow Australia to waive any agreements between government authorities and foreign countries that threaten national interests.

Foreign Secretary Marise Payne said the federal government will reverse the Victorian government's decision to join the Belt and Road Initiative.

According to her, the memorandum of understanding and the framework agreement signed in 2018 and 2019, respectively, were among the four that she will cancel.

The announcement comes at a time of deteriorating relations between Beijing and Canberra, as the two governments are arguing over trade and competing for influence in the Pacific.

Payne also said she would cancel the 2004 memorandum of understanding between the Department of Education and Training and Iran, as well as the scientific cooperation agreement the department signed with Syria in 1999.