China is pitching its Belt and Road Initiative as the deal of the century, opening up the door to a new and prosperous relationship with the world's emerging economic superpower.

But the Federal Government has refused to sign up and, despite a close economic relationship with China, Western Australia's Government has said it won't either.

So what is Belt and Road, what would WA get out of it and why is it so controversial?

What's it all about?

Chinese diplomats all over the world are trying to get foreign governments to sign up to Beijing's Belt and Road Initiative (BRI), saying it's a deal too good to miss.

In short, the BRI is about China being allowed to invest in key infrastructure like ports, roads and rail across the world.

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 Inside China's Belt and Road infrastructure initiative.

The "Belt" refers to the road and rail aspects, while confusingly the "Road" is a transport route between the ports.

China says the BRI would create a massive interconnected corridor for trade across the world.

But critics warn the loans China is offering poor countries to entice them to take part could become diplomatic debt traps.

Who's backing it?

The Australia China Business Council (ACBC) is a loud voice in the pro-BRI debate in WA.

Recently its WA chapter hosted a lunch at the Perth Convention and Exhibition Centre sponsored by WA mining billionaire Andrew Forrest's Fortescue Metals Group, with politicians and WA businesspeople among those in attendance.

Visiting Chinese academics, coordinated by Perth's Chinese consulate, and several pro-China WA business representatives spent several hours spruiking the BRI and explaining how WA businesses could invest in existing BRI projects overseas, even if the Federal Government hasn't signed up.

ACBC WA director Adam Handley said the big risk was that WA would miss the boat on a golden opportunity.

"My fear for Australia is that we'll wake up in five years' time and find that we've had this multi-trillion dollar investment opportunity to stimulate exports and jobs and growth for Australia, which has largely passed us by because we've, to put it bluntly, stuck our heads in the sand," he said.

What would WA get out of it?

Supporters claim the BRI is about economic cooperation, and Perth's Chinese consulate says if WA signs up it would mean more joint ventures in LNG, lithium and hydrogen.

There is also talk of WA farmers getting better access to Chinese markets and tourism operators benefiting from more direct flights between Perth and China.

New "growth points for cooperation" in education have also been touted.

So who's blocking it?

The Federal Government has not signed up.

In a statement, the Department of Foreign Affairs and Trade said: "Australia welcomes the contribution that infrastructure initiatives can make to regional development, but it is important that such initiatives are transparent and open, uphold robust standards, meet genuine need, and avoid unsustainable debt burdens for recipient countries."

WA has a close relationship with China, thanks in large part to the huge volumes of Pilbara iron ore purchased by Chinese steel mills.

Huge volumes of iron ore from WA's north-west end up in Chinese steel mills. ( Supplied: BHP Billiton )

But in June, WA Premier Mark McGowan ruled out signing up to the BRI.

Asked why last week, he said: "Frankly, because we don't need to."

"We already have a great trading relationship, a great economic relationship, a great cultural relationship, it's working well," he said.

What are the perceived dangers?

Critics argue Belt and Road is really about world domination.

Australian Strategic Policy Institute executive director Peter Jennings warned China wanted to replace the United States, not only as the world's biggest economy but also as its most significant military power.

"Belt and Road is a strategic plan for building Chinese economic and political control," he said.

"Why should any country other than China want to sign up to that Chinese strategic objective?"

He said small, poor nations risked becoming beholden to China if they accepted big loans. Some critics call this "debt trap diplomacy".

Mr Jennings said Australia would also risk becoming too dependent on China if it signed up to the BRI and criticised the Victorian Government for doing so.

Victorian Premier Daniel Andrews deepened his Government's engagement with the Belt and Road project this year. ( Twitter: Lisa Tucker )

"Building too much dependence on a very different type of society, an authoritarian, communist party-led China, is a risk for any democracy," he said.

So WA has said no — isn't that game over?

China's Consul General in Perth, Dong Zhihua, said she respected WA's decision to abstain from the BRI, but believed it was her "duty" to present what it offered.

Mr Handley admitted that for "largely domestic political reasons", he thought signing up to the project would be a "bridge too far" for the WA Government at the moment.

Instead, he proposed WA businesses create momentum for it to become a possibility in the future.

"We are advocating the formulation of some sort of China-Western Australia Belt and Road or Infrastructure Institute, which is a cooperative between business and hopefully elements of government as well," he said.

China watchers say WA will continue to feel pressure to sign up, because Beijing's most powerful tool is money and the Belt and Road Initiative is offering lots of it.