China said on Thursday it had suspended an economic agreement with Australia, in an apparent tit-for-tat response to Canberra’s scrapping a Belt and Road infrastructure pact and threat to undo a deal leasing Darwin Port to a Chinese company.

The China-Australia Strategic Economic Dialogue deal has been pulled “based on the current attitude” of the Australian government, China’s National Development and Reform Commission said in a statement, blaming some officials of “ideological discrimination.”

Beijing will “indefinitely suspend all activities under the framework” of the agreement, the statement said.

The Australian dollar sank 0.6 percent soon after the news.

Darwin is the most important port on Australia’s north coast, the closest to Asia and a base for US Marines who rotate in and out of the country.

(AFP)