The Victorian Government has released an agreement it signed with China over its controversial global infrastructure initiative, after several days of pressure from the Opposition and the Federal Government.

Key points: The Victorian Government says the deal does not bind the state to be involved in any specific project

The Victorian Government says the deal does not bind the state to be involved in any specific project The Opposition says it has concerns about the impact on Victorian businesses

The Opposition says it has concerns about the impact on Victorian businesses 68 countries have signed up to President Xi Jinping's signature initiative

The four-page Memorandum of Understanding, posted online late on Sunday, says the two parties will "work together within the Belt and Road Initiative", China's trillion-dollar project to revive an ancient network of land and ocean trade routes.

"Based on existing cooperation, the Parties will enhance policy cooperation, facilities connectivity, unimpeded trade, financial cooperation, people-to-people bond, and promote Digital Silkroad Cooperation", the agreement says.

It says China and Victoria will encourage "businesses, organisations and relevant agencies" on both sides to "play facilitating roles and foster long-term stable, sustainable partnerships" and "create an enabling, growth-friendly policy environment for investment cooperation between the businesses on both sides".

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The agreement is dated October 8, but the Victorian Government did not announce the agreement until it issued a media release on October 25, stating it had finalised the memorandum on that date.

The memorandum says it will remain in effect for five years and be automatically extended for subsequent five-year terms unless terminated by "joint agreement".

Victorian deal 'extremely unwise': analyst

The executive director of the Australian Strategic Policy Institute, Peter Jennings, said he hoped other state governments did not follow Victoria's example in signing such agreements.

"I think it was extremely unwise for the Victorians to do this, because they're really involving themselves in areas that constitutionally are the responsibility of the Federal Government," Mr Jennings said.

He said the Federal Government, with Malcolm Turnbull as prime minister and Julia Bishop as foreign minister, had already declined to back the Belt and Road Initiative as a whole, but said it would consider specific projects on their merits.

"The [Federal] Government's view is that they'll look case-by-case on specific investment proposals, but no blanket support, and China knows that, so to go to the Victorians which really don't have the authority to make binding commitments on behalf of the Commonwealth in foreign affairs, I think is really a form of interference in Australian domestic politics on the part of the Chinese."

Mr Jennings said there were increasing concerns globally about the Belt and Road Initiative, including about small and developing nations being locked into debts they were incapable of servicing.

Last year, a Chinese company took over Hambantota Port in Sri Lanka on a 99-year lease after the Sri Lankan Government was unable to pay its debts.

"There's a growing sense of caution that this is not just simple trade deals, there's more to it than meets the eye and for that reason governments need to be careful.

"It's really a broader strategy to lift the influence of China through the Asia-Pacific region and I think governments need to be careful about that, that they don't find themselves effectively facilitating a Chinese strategic objective."

Space to play or pause, M to mute, left and right arrows to seek, up and down arrows for volume. Watch Duration: 1 minute 29 seconds 1 m 29 s China attempts global dominance with One Belt One Road project

Opposition points to fears about Chinese loans

A Victorian Government statement published on the website of the Department of Premier and Cabinet said the agreement was "not legally binding" and "does not bind Victoria to be involved in any specific project or initiative".

"As it always does, the Government will consider both Victoria's and the national interest before agreeing to be involved in any specific activity," the statement said.

It said the memorandum was in line with a draft agreement that was provided to the Department of Foreign Affairs and Trade in June.

Premier Daniel Andrews last week repeatedly resisted calls to release the agreement, noting the Federal Government had not released an agreement it made with China over the same initiative.

But Opposition Leader Matthew Guy then promised to release the agreement if the Coalition won the November 24 state election.

Victorian Shadow Treasurer Michael O'Brien said the release of the document had not allayed the Opposition's concerns about the deal.

"It commits the Victorian Government to unimpeded trade with the Chinese Government," Mr O'Brien said.

"What does that mean for local businesses?

"There are also serious concerns about large Chinese Government loans coming into Victoria, potentially on terms which are very unfavourable.

He said it was unclear what rights Victoria had to terminate the agreement.

"It seems to suggest the agreement can only be terminated by mutual agreement."

Prime Minister Scott Morrison last week took Mr Andrews to task over the deal, saying foreign policy was the domain of the Commonwealth Government, and it sent "mixed messages" when state governments engaged directly with other nations.

So far, 68 countries including New Zealand have signed up to the signature project of President Xi Jinping, which marks his nation's plans to expand its power in the region and beyond.