China's state planner said the government will "indefinitely suspend" all activities under the China-Australia Strategic Economic Dialogue, in the latest sign of deteriorating relations between the two countries.

The National Development and Reform Commission said the decision was made after Australian officials "launched a series of measures to disrupt the normal exchanges and cooperation" between the nations. These moves were made "out of Cold War mindset and ideological discrimination," the NDRC said in a statement Thursday, without providing further details.

The Australian federal government last month canceled an infrastructure deal with China under Beijing's Belt and Road Initiative amid concerns that the arrangement could pose a national-security risk.

Australia's trade minister, Dan Tehan, said the NDRC's decision was disappointing. "The Strategic Economic Dialogue, which was last held in 2017, is an important forum for Australia and China to work through issues relevant to our economic partnership," he said in an emailed statement.

The deal's cancellation is viewed as deepening a diplomatic rift between the two countries, whose ties soured last year after Australia called for an investigation into the origins of the coronavirus, angering Beijing. China retaliated by placing higher tariffs on Australian imports and warning its citizens not to travel to Australia.

Launched in 2014, the strategic economic dialogue was attended by economic officials and business people from both countries. Beijing and Canberra also discussed the Belt and Road program in previous rounds of the dialogue, according to Chinese government statements and state media reports.

"We remain open to holding the dialogue and engaging at the ministerial level," Mr. Tehan said.

Write to Singapore Editors at singaporeeditors@dowjones.com

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