Negative relations between China and Australia began to deteriorate on Thursday after Beijing said it had "permanently suspended" all operations under one high-level economic talks if it was its main source of imports.
It is not immediately clear what effect the announcement will have on trade between the two countries, which have already fallen amid the pressure of retaliation from Beijing.
The Australian dollar is weak against the US dollar following the news, close to breaking 77 cents after trading at about 77.47 cents on Wednesday.
Beijing's economic planning agency, the National Reform and Development Commission, said in a statement in English on Thursday that some Australian officials had recently unveiled unspecified measures "out of the Cold War concept" to disrupt cooperation with China.
The commission said that based on this attitude, it had decided to "permanently suspend all activities under the China-Australia Strategic Economic Dialogue framework."
Australia's Minister of Trade, Tourism and Investment, Dan Tehan, said in a statement that the decision was "disappointing" and that the country remains open to "negotiations and engagement at Ministerial level."
The China-Australia Chamber of Commerce in Beijing did not immediately respond to a request for comment.
The last meeting under this discussion was in 2017. The first meeting was held in 2015, when the two countries signed a free trade agreement. At the time, China was Australia's largest trading partner.
The dispute began in 2018 with the banning of Australia's 5G network on China's largest communications giant Huawei and was exacerbated by a request for an independent inquiry into the origins of Covid-19.
China has since introduced measures to combat the ban on wine importation into Australia and to illegally prevent the importation of coal into the country, among other restrictions. China is still buying steel from Australia, with a total value of $ 115 trillion US dollars exported to Australian goods in the 12 months to March, according to Reuters.
The Australian government has stepped up its scrutiny of international agreements and in April suspended two councilors involved in the Belt and Road Initiative. Critics say the regional infrastructure development program is Beijing's way of maximizing its impact overseas.
Earlier this week, Reuters reported, citing a government source, that Australia was reviewing the port's lease on a Chinese company.
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