Australia and China: committing to a partnership for change | East Asia Forum
Australia's establishment of diplomatic relations with China in by the Whitlam Government, together with Australia's One China policy, has. The Australia–China relationship will undergo a huge change over the coming decade. The scale and complexity of the relationship is growing. China is Australia's largest trading partner, with total trade (goods and We will write a custom sample essay on Australia and China Tade specifically for you.
Both Australia and China gain from growing and diversifying their economic relationship through new flows of tourists, students, investors and migrants. Despite recent slowdowns, China will remain a key driver of global growth. Australia will no longer only be a remote supplier of raw materials. It should be a palpable and distinctive presence in Chinese daily life, particularly for the urban middle classes. It also has strong economic, cultural and strategic links to the United States, and therefore a compelling interest in a positive relationship between the United States and China.
Chinese and Australian prosperity has depended on the liberal, rules-based global economic system. Both countries have a compelling interest in the successful adaptation of the institutions of global governance to the economic and security challenges of the 21st century. A deeper partnership between China and Australia can be a powerful force for the strengthening and developing of these institutions.
China is shifting its growth drivers from investment, exports and heavy industry to consumption, innovation and services. This transformation will lead to fast growth in trade between Australia and China in real terms, much of it in services. First, we are facing a situation where our major economic partner is not one of our major strategic partners — what does this mean and how should we respond?
Second, how do we effectively manage the sheer scale of our economic relationship? How China and the United States interact with each other in the decades ahead is of fundamental importance to Australia and the region as a whole. As a significant regional economy and a strategically important country to both China and the United States, how Australia manages its bilateral relationships with these world powers matters. We have a strong and complementary economic relationship with China which benefits both our countries.
We should do all that we can to continue to build on it — in traditional sectors such as resources and energy for Australia and in manufacturing for Chinabut also in the services sector and agriculture.
Australia needs to reset the relationship with China and stay cool
But our different histories, political systems and strategic interests mean there is potential for tension that each country will need to work at if we are to manage our relationship. We must recognise there are some areas where we will have to agree to differ, while respecting each others view points. At a government level, we have a strong network of bilateral dialogues which provide opportunities for our two countries to engage on issues ranging from economic ties to climate change, defence relations to human rights.
To further these contacts I will be travelling to China myself in November to meet with a range of senior officials, business people and other experts. We could also be making greater use of less formal engagement, for example through social media networks. These networks, blogs and so on can help us understand the issues that concern our respective societies and that are being debated by the general population.
Our strong trade relationship with China is itself another challenge for Australia. Our trade-exposed industries outside the resources and energy sector have come under great pressure. The high exchange rate resulting from the terms of trade has undermined the competitiveness of parts of our economy, while the profitability of the resource and related sectors is bidding away skilled labour. As I have said elsewhere, it is as if we woke up one morning to find the world had made us richer.
The China Australia relationship: Recognising the challenges, grasping the opportunities
But to benefit, we need to accept that labour and capital will need to be deployed differently to the past, and that some sectors and firms will need to grow more slowly so that the more productive can grow faster.
We need policy settings which facilitate these changes, rather than trying to impede them.
This means policies to promote investment, innovation, education and skills — policies which can increase our ability to innovate and capture new opportunities and which will deliver the productivity gains we need to continue to lift our living standards. This is important, but of itself is nothing new. What is new is that, unlike China, those economies were not themselves trying to manage their own massive structural transformation — which, in turn, raises the probability of policy mis-steps. China is not unique in this respect — those of us old enough need only think back to the challenges of adjustment, including our own policy mis-steps, as we opened our economy in the s and early s.Kevin Rudd on Australia's Need for a More Balanced Relationship with China
But the president himself was clear on how he saw things. Late last year, Angus Grigg, former China correspondent for the Australian Financial Review observed that neither the prime minister nor foreign minister had visited China in well over a year and that celebrations to mark the 45th anniversary of diplomatic relations were decidedly low key.
That said, Secretary of the Department of Foreign Affairs and Trade Frances Adamson said this week that some travel may have been delayed simply because of a busy Chinese political calendar and Spring Festival celebrations. Whether this can be sustained is an open question. She said that China could not be trusted to resolve its disagreements in accordance with international law and rules because it was not a democracy.
She also said it would be unable to reach its economic potential for the same reason.
Australia–China relations - Wikipedia
No other US ally made such claims. At the same time the rhetoric was being ratcheted up, media reports alleging extensive and covert Chinese government interference in Australian society bubbled away. It was in December that things deteriorated sharply.