{ "id": "IN10888", "type": "CRS Insight", "typeId": "INSIGHTS", "number": "IN10888", "active": false, "source": "EveryCRSReport.com", "versions": [ { "source": "EveryCRSReport.com", "id": 580548, "date": "2018-04-23", "retrieved": "2019-05-03T16:09:00.858811", "title": "Australia, China, and the Indo-Pacific", "summary": "Recent debate in Australia on regional strategic challenges has focused on China\u2019s rising influence, the durability of the U.S.-Australian alliance, and how Australia should respond and position itself relative to related changes in Indo-Pacific power dynamics. This debate is framed by increasing concern in Australia about the influence of China and those who promote its interests, despite the fact that China remains a key economic and trade partner. Australia\u2019s outlook is also affected by uncertainty about the Trump Administration\u2019s transactional approach to the alliance with Australia and U.S. engagement with the region. \nAustralia\u2019s China Debate\nA 2017 Lowy Institute poll found that 77% of Australians view the alliance relationship with America as important for Australia\u2019s security while 46% said that China \u201cis likely to become a military threat to Australia in the next 20 years.\u201d The poll also found that 79% see \u201cChina as more of an economic partner than military threat.\u201d Of those polled, 60% felt that President Trump \u201ccauses them to have an unfavourable opinion of the United States.\u201d \nFor many years, Australian perceptions of China, particularly among business and political elites, have been shaped by China\u2019s role as the leading destination for Australian exports. According to the Australian Trade and Investment Commission, \u201cChina is Australia\u2019s number one export market, our largest source of international students, our most valuable tourism market, a major source of foreign direct investment and our largest agricultural goods market.\u201d The China-Australia Free Trade Agreement entered into force in 2015.\nThe Australian Secret Intelligence Organization has pointed to the growing level of harmful espionage and foreign interference operations being carried out in Australia that have sought to obtain sensitive government and corporate information and to influence public debate. Prime Minister Turnbull introduced a legislative overhaul of intelligence and espionage laws in December 2017. These espionage, foreign interference, and foreign influence reforms would enhance existing espionage, secrecy, treason, sabotage, and related offenses, and introduce new offenses targeting these areas.\nChina\u2019s activities in the South Pacific are raising concerns in Canberra. Reportedly, China and Vanuatu have held discussions to establish a Chinese military presence in Vanuatu, a small island nation located between Australia and American Samoa. Australia and New Zealand have warned China against building this military base, which would be China\u2019s first overseas facility in the South Pacific.\nSome critics outside government question the underlying assumptions and support for the alliance with the United States. Former Prime Ministers Paul Keating and Malcolm Fraser became critical of the alliance and called on Australia to undertake a more independent foreign policy. More recently, Australian academic Hugh White\u2019s Quarterly Essay \u201cWithout America: Australia in the New Asia\u201d asserts that \u201cAmerica will cease to play a major role in Asia, and China will take its place as the dominant power.\u201d He asks, how should Australia position itself given this dynamic? \nAustralian views of China are being shaped by revelations about how China is seeking to gain influence there. A June 2017 Four Corners television documentary, Power and Influence, the February 2018 book Silent Invasion: China\u2019s Influence in Australia by Australian author Clive Hamilton, and Prime Minister Turnbull\u2019s former Senior Advisor on China John Garnaut\u2019s March 2018 article in Foreign Affairs, \u201cHow China Interferes in Australia,\u201d all detail China\u2019s efforts to expand its influence in Australia. According to Hamilton, the central thesis of Silent Invasion is that \u201cthe influence of the Chinese Communist Party and its sympathizers in Australia on the major institutions of Australian democracy and public life is much greater than previously thought, and in fact Australia has been the target of an extensive campaign of influence by the Chinese state.\u201d One review of Silent Invasion labeled it a \u201cMcCarthyist manifesto.\u201d For Hamilton\u2019s response see \u201cWhy the Critics are Wrong.\u201d Two widely reported cases alleging China\u2019s influence with Australian politicians involve former Labor Senator Sam Dastyari and former Liberal Trade Minister Andrew Robb. \nAustralia\u2019s Foreign Affairs and Defense Policy\nAustralian foreign affairs and defense policies are articulated in the 2017 Foreign Policy White Paper and the 2016 Defense White Paper. Accordingly, Australia \u201csupports the deep engagement of the United States in the economic and security affairs of the region\u201d and observes, \u201cThe roles of the United States and China and the relationship between them will continue to be the most strategically important factors in the Indo-Pacific region to 2035. A strong and deep alliance [with the United States] is at the core of Australia\u2019s security and defence planning.\u201d Prime Minister Turnbull stated in his 2017 Keynote Address to the Shangri la Dialogue, \u201cIn this brave new world we cannot rely on great powers to safeguard our interest. We have to take responsibility for our own security and prosperity while recognising we are stronger when sharing the burden of collective leadership with trusted partners and friends.\u201d \nAustralia\u2019s Evolving Indo-Pacific Partnerships\nIn recent years, Australia has developed a network of partnerships with Indo-Pacific nations that augment Australia\u2019s bilateral alliance relationship with the United States. Australia\u2019s strategic relationship with Japan is its most developed relationship with an Asian nation. The 2007 Joint Declaration on Security Cooperation provides a foundation for a wide range of Australia-Japan security cooperation. Australia and Japan share a common vision for a free, open, stable, and prosperous Indo-Pacific region based on a rules-based order. The two nations are reportedly negotiating a reciprocal access agreement to facilitate joint operations and exercises. Turnbull made a state visit to India in April 2017. In their Joint Statement, Turnbull and Prime Minister Narendra Modi reaffirmed their \u201ccommitment to a peaceful and prosperous Indo-Pacific.\u201d The two leaders also noted \u201cthe strategic and economic interests of both countries are converging which opens up opportunities for working together in a rapidly changing region.\u201d Australia is also once again working with India, Japan, and the United States through a quadrilateral dialogue, and in March 2018 Australia and Vietnam also signed a Strategic Partnership.", "type": "CRS Insight", "typeId": "INSIGHTS", "active": false, "formats": [ { "format": "HTML", "encoding": "utf-8", "url": "https://www.crs.gov/Reports/IN10888", "sha1": "7069b77073e5bb05b5e5ed8746673948daefa02a", "filename": "files/20180423_IN10888_7069b77073e5bb05b5e5ed8746673948daefa02a.html", "images": {} }, { "format": "PDF", "encoding": null, "url": "https://www.crs.gov/Reports/pdf/IN10888", "sha1": "320fcf337f5ac43e300e160801a0b7aaf74da7f8", "filename": "files/20180423_IN10888_320fcf337f5ac43e300e160801a0b7aaf74da7f8.pdf", "images": {} } ], "topics": [ { "source": "IBCList", "id": 4911, "name": "East Asia & Pacific" } ] } ], "topics": [ "CRS Insights", "Foreign Affairs", "National Defense" ] }