SYDNEY - Australia's parliament was on Thursday set to pass legislation giving the federal government power to veto any agreement struck with foreign states, a move likely to anger China and intensify a bitter diplomatic spat between the two countries. The law allows the Commonwealth to block any agreement between Australian states, councils or institutions and a foreign government, such as a controversial 2018 deal between the state of Victoria and China. "Australia's policies and plans, the rules that we make for our country are made here in Australia according to our needs and our interests," Prime Minister Scott Morrison told reporters in Canberra. Morrison has stressed the law is not aimed at any country but it is widely seen by analysts as directed at China. "It creates another trigger for the relationship to deteriorate," said Melissa Conley Tyler, research fellow at the Asia Institute of the University of Melbourne. Under the terms of the proposed law, the foreign minister can veto any agreements with foreign governments if they "adversely affect Australia,
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