Juggling triads : Australian foreign policy towards Japan and China

In many respects the bilateral relationships Australia is enjoying with both Japan and China are at an all-time high. Prime Ministerial-led initiatives by Tony Abbot and reciprocal visits in 2014 to both countries are indicative of the intent to strengthen already robust bilateral relationships. Nonetheless the rise of China and its impact on regional dynamics is one of the greatest challenges faced by Australian diplomats in a generation and has been the source of immense debate in Australia. In the case of Japan, the security communities in both countries are ‘on side’ and committed to expanding the security ties. Notably, the signing of an Economic Partnership (EPA) in July 2014 and ratified by both parliaments in January 2015 is expected to lead to a substantial expansion in two-way trade. Australia’s abundant natural gas reserves, moreover, are seen as a potential alternative energy supply for a post-Fukushima Japan wary of the use of nuclear power plants. Australia’s relationship with China, however, is more problematic. The extraordinary rise of the Chinese economy has meant that China since 2008 has been Australia’s largest trading partner. At the same time, China’s strategic competition with the United States and the subsequent changing geo-political landscape, has led to more uncertainty in the Asia Pacific region. This chapter will critically examine both bilateral relations and Australia’s response to the rise of China.