Legislation will be introduced into federal parliament next week which could give the government the power to cancel agreements the states sign with foreign entities.
Currently every jurisdiction can ratify a deal with another country without informing the Commonwealth.
Universities can also enter agreements with overseas entities independently of the federal government.
The Morrison government is worried some deals could pose a risk to Australia’s prosperity and security.
If the legislation is passed, a special unit will be set up within Foreign Affairs so every agreement can be reviewed.
The government argues each deal must meet Australian values and foreign policy objectives.
It would also see an end to Victorian Premier Daniel Andrews’ controversial infrastructure deal with China, known as the Belt and Road Initiative.
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