By tearing up the two agreements signed between Victoria state and China on the Belt and Road Initiative, the Australian federal government has dealt another heavy blow to the country's already ailing bilateral ties with China. Contrary to what it seems to believe, it now faces severe consequences for its unreasonable provocation against its biggest trading partner.

In a statement on Wednesday evening, Australian Foreign Minister Marise Payne said that a memorandum of understanding and framework agreement the Victoria state government signed with China in relation to the Belt and Road Initiative had been canceled under the new foreign relations act, which gives the federal government the power to veto agreements signed with foreign countries by governments and agencies at all levels.

To justify her government's decision, Payne told the Australian Broadcasting Corporation that she considered them to be "inconsistent with Australia's foreign policy or adverse to our foreign relations in line with the relevant test in Australia's Foreign Relations (State and Territory Arrangements) Act 2020".

Since when? And in what way? Payne's remarks do not hold water. But it is an open secret that ever since the mutually beneficial deals were reached they have been a thorn in the side of the anti-China politicians of the federal government and the media outlets that act as their mouthpieces.

In a radio interview on Thursday, Australian Defence Minister Peter Dutton made clear that the move had nothing to do with national interests; it was simply a symptom of the old-fashioned anti-communist hysteria that is rife in Canberra.

"We can't allow these sort of compacts … to pop up because they're used for propaganda reasons and we're just not going to allow that to happen" as we have a problem with "the values or virtues or the outlook of the Chinese Communist Party", he said.

Indeed apart from putting pressure on the Victoria state government to walk back from the deals, the federal government introduced the new law with the express purpose of giving it the power to override and veto the state government's decision.

With the federal government churning out anti-China policies one after another, it has now demonstrated that it is intent on closing the doors on all cooperation with China.

That means it is closing the doors to investment and jobs. As a spokesperson from the Chinese Embassy in Australia has rightfully pointed out, the unreasonable and provocative move will not only further damage bilateral relations but also end up hurting Australia's self interests. Rather than harming the state, joining the Belt and Road Initiative has brought considerable economic benefits to Victoria. Victorian Premier Daniel Andrews defended the agreements, saying they had created "more jobs and more trade and investment for Victorians".

It is the federal government that is hurting Australia's national interests, not China. As such, Canberra now has to answer the question: Is it intent on driving China-Australia ties into a wall?