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Former Pentagon adviser Jason Israel says China’s suspension of economic dialogue with Australia doesn’t have an immediate practical impact.

China has vowed to “indefinitely” suspend all projects in Australia related to the Strategic Economic Dialogue as diplomatic tensions with the Communist superpower reach an “all-time low”.

Beijing made the announcement from its state-controlled National Development and Reform Commission.

“It is symbolic and I think in their announcement they said Australia has a Cold War mentality and should be treated as such,” Mr Israel told Sky News.

“So they don’t want to have that dialogue.”