"It is disappointing that the federal government haven't found a way to sign the agreement ... if there were problems in the original draft then why not redraft it and have another go," he told The Australian Financial Review on Friday.

"It is vitally important for us where we sit geographically and given the Chinese economy is going to be the dominant world economy for the next 100 years that we are part of it. We will always have different interests given our security alignments but trade is important to both sides and is vitally important to us.

"If a foreign country like China is coming and offering you significant infrastructure in countries that can't afford it themselves, of course you are going to want to do it. To try to say you shouldn't for political reasons is just naive."

Strategic motives

Mr Broomhead, who also chairs explosives maker Orica, said the MoU would help Victorian companies bidding for BRI projects navigate the approval process, get on to tender lists and enable them to establish the right relationships in China. He said there would be benefits from Australian firms working directly on infrastructure projects and toll roads as well as services firms such as accountants and lawyers, and healthcare companies.

The BRI, a reference to the overland route linking China to Central Asia, Russia and Europe and maritime links connecting the mainland to south-east Asia, India and Africa, was first announced by Mr Xi in September 2013. The spending program his estimated to be worth up to $US1 trillion ($1.4 trillion). Many have questioned the program's strategic motives, however, and Canberra has so far refused to officially sign up.

Mr Broomhead, who has been critical of the Turnbull government's handling of the China relationship, said he was seeing signs of a thaw.

"I think we are getting back to our normal more bipartisan way of dealing with the Chinese. We will always have differences but there is a way you can pursue those differences without offending and damaging the relationship."

He rejected suggestions BRI was saddling poorer countries with debt they could not afford to pay back.

"Obviously one of the impacts is spreading influence in the region for the Chinese and that is fine. All great powers have done that forever. You have to bear that in mind. What is to stop us, for example, being banks of last resort for these countries and say if you can't afford these projects we will step in and fund it for you? There are plenty of ways of dealing with it other than standing in the corner and saying it is wrong."

Northern Territory Chief Minister Michael Gunner led a charm offensive to China in August where he talked up the potential benefits of BRI. Tasmania has also sent a delegation to China this year. Ministers from other states will visit Shanghai next month as part of a delegation being led by Federal Trade Minister Simon Birmingham.