Australia’s diplomatic balancing act

From the editor’s desk

Australia’s relations with both the US and China are crucial Australian Prime Minister Anthony Albanese met Chinese President Xi Jinping recently, and following that meeting he said that he had a "very positive" engagement with China. Xi on his part said that a stable relationship between the two countries served each other's interests and that Australia and China should further enhance their cooperation. This is a clear signal from China that it was ready to move on, leaving behind the recent strain in relations between the two countries. Interestingly, Albanese is the first Australian leader to visit Beijing since 2016. Prior to his China visit, the Prime Minister had visited the US in October this year. The Prime Minister’s talks with US President Biden was aimed at strengthening Australia-US relations, and they also discussed issues related to common interests, including global issues. As Australia tries to repair its relations with China, and at the same time maintain strong ties with the US, it finds itself in a unique geopolitical position, straddling the interests of two major powers- the United States and China. The dynamics of Australia’s relations with these giants shape its foreign policy, economic stability, and regional influence. Examining the nuances of Australia’s ties with the US and China reveals a delicate balancing act that involves economic interdependence, security alliances, and standing up to the challenges of a changing global order.

To begin with, Australia’s economic relationship with both the US and China plays a vital role in shaping its domestic prosperity. Historically, the US has been a significant investor in Australia, and the economic relations between the two nations are deeply entrenched. The US is Australia’s thirdlargest trading partner and a major source of foreign direct investment, particularly in sectors such as finance, technology, and defence. On the other hand, China has emerged as Australia’s largest trading partner, driven primarily by the demand for Australian natural resources. China’s insatiable appetite for commodities like iron ore, coal, and agricultural products has fueled Australia’s economic growth for decades. This economic interdependence has been a double-edged sword, providing economic benefits while exposing Australia to the risks associated with China’s economic policies and geopolitical assertiveness. Then there are Australia’s security alliances, which are a critical aspect of its foreign policy. Historically, Australia has maintained a strong defence alliance with the United States through the Australia, New Zealand, and United States Security Treaty (ANZUS). This treaty, forged during the Cold War, underscores the security umbrella provided by the US to Australia and New Zealand.

In recent years, the USAustralia alliance has gained prominence as both nations work together to address common security challenges, including counterterrorism, regional stability, and the rise of China. Australia’s commitment to the Quad, a strategic forum comprising the US, Japan, India, and Australia, reflects its alignment with the US in shaping a free and open IndoPacific region. Despite the historical relations with the US, Australia has also recognized the importance of engaging with China on security issues and on trade.

The shifting geopolitical landscape in the Asia-Pacific region poses challenges for Australia’s diplomacy. The rise of China as a global power is perceived as a threat for the countries in this region, forcing Australia to navigate carefully its relations with both the US and China. While the US remains a crucial security ally, China’s economic importance and regional influence cannot be ignored.

However, Australia’s commitment to the Quad has drawn criticism from China, which perceives it as part of a containment strategy.

The Quad serves as a platform for Australia to collaborate with likeminded nations in addressing common challenges without completely alienating China. The South China Sea dispute further complicates matters. While the US has been a relentless critic of China’s territorial claims and has conducted freedom of navigation operations in the region, Australia has taken a more cautious approach, emphasizing the need for peaceful resolution and adherence to international law, Striking a balance between supporting its allies and maintaining a diplomatic dialogue with China remains a delicate challenge.

The realm of technology has become a significant battleground in the broader geopolitical competition. Australia, like many other nations, faces the challenge of balancing its technological partnerships with the US and China. The US has been a longstanding collaborator in defence technology, intelligence sharing, and space exploration. At the same time, China’s technological prowess and