China halts trade talks with Australia amid strained relations

China's state economic planner said on Thursday it has "indefinitely" suspended all activities under the China-Australia Strategic Economic Dialogue, amid strained relations between Beijing and Canberra.

"Recently, some Australian Commonwealth Government officials launched a series of measures to disrupt the normal exchanges and cooperation between China and Australia out of Cold War mindset and ideological discrimination," the National Development and Reform Commission said in a statement explaining the decision.

Relations between China and Australia deteriorated last year after Canberra called for an international inquiry into the origins of the Covid-19 pandemic, prompting trade reprisals from Beijing.

Australia in April cancelled two deals struck by its state of Victoria with China on Beijing's flagship Belt and Road Initiative, prompting the Chinese embassy in Canberra to warn that already tense bilateral ties were bound to worsen.

Reuters reported this week that Australia is reviewing the 99-year lease of a port in the country's north to a Chinese firm, according to a government source.