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Australian flag flutters in front of the Great Hall of the People during a welcoming ceremony for Australian Prime Minister Malcolm Turnbull in Beijing on April 14, 2016. Photo Reuters/Jason Lee

"Recently, some Australian Commonwealth Government officials launched a series of measures to disrupt the normal exchanges and cooperation between China and Australia out of Cold War mindset and ideological discrimination," China's National Development and Reform Commission (NDRC) said in a short statement on the decision.

The commission did not say in the statement what specific measures prompted the action, Reuters reported.

In the latest volley, the China-Australia Strategic Economic Dialogue was pulled "based on the current attitude" of the Australian government, China's National Development and Reform Commission said in the statement on Thursday, blaming some officials of a "Cold War mindset" and "ideological discrimination".

Beijing will "indefinitely suspend all activities under the framework" of the agreement, the statement added.

The Australian dollar sank 0.6 percent soon after the news before recovering later in the day.

It was not immediately clear if the row would impact on a free-trade agreement between the two that came into effect in 2015.

Australia remains open to dialogue

Australian Trade Minister Dan Tehan said the decision by the commission was "disappointing" because the economic dialogue was "an important forum for Australia and China to work through issues relevant to our economic partnership".

Australian Trade Minister Dan Tehan. Photo Sydney Morning Herald

"We remain open to holding the dialogue and engaging at the ministerial level," he said in a statement.

"It's mainly a symbolic move, but still the trend (of) discussion and dialogue being suspended at lower and lower levels is a real concern," said James Laurenceson, director of the Australia-China Relations Institute at University of Technology Sydney.

"Overall, what we're seeing in Canberra and Beijing is both sides doubling down and hardening their stance," he said./.

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