Australia's Relationship with Its Neighborhood

Running head: AUSTRALIA’S RELATIONSHIP WITH ITS NEIGHBORHOOD
AUSTRALIA’S RELATIONSHIP WITH ITS NEIGHBORHOOD
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1AUSTRALIA’S RELATIONSHIP WITH NEIGHBORHOOD
Australian-Sino ties have been staggering geopolitically and strategically, however, from
1980s both have established economic ties on the ground of bilateral and regional interests.
China stand as the stalwart of fastest growing nation with over 6.9% of GDP growth in the year
2017 which opens a massive opportunities to collaborate as an investment and trade partner for
Australia (Morscher, 2015). The aggressive China with its strategy of string of pearls and ever
growing presence in the Indo- Pacific region demands Australia to come forward in the global
affairs which is tilting much towards China. Further alliance of Australia with United States have
also irked China, who is playing a pivotal role global affairs, Southeast region and South China
Sea. China’s vibrant Belt and Road Initiative has and CPEC have also engaged the ASEAN
nations to collaborate in order to grow its trade prospects in these nations. To counter the rising
China, Australia have also again participated in the Quad group of Japan, India and US which
aims to conduct a strategic dialogue and serve as a balancing stroke to increasing China’s
military and economic power.
Australia is a maritime democratic country which can influence in the Indo-Pacific region
greatly and increase its bilateral ties with ASEAN and specifically India. India is one of the
major country in the Indo-Pacific nation and Australia has recognized this fastest emerging
nation as a stabilizing partner to provide security and defence in the backdrop of assertive China.
The Defence White Paper released by Canberra in 2016 also signifies India as a vital economic
and security partner for enhancing the regional stability ("Australia's Relations with China:
What's the Problem? – Parliament of Australia", 2018). China and India has the largest share in
the population which can serve as huge market for Australian goods and services thus improving
its economic prosperity. India has a huge demographic dividend coupled with its strategic

2AUSTRALIA’S RELATIONSHIP WITH NEIGHBORHOOD
interest in the Indo-Pacific interests is completely aligned with Australian policies thus serving a
collaborative partner on similar lines.
According to the foreign policy of Australia it should lay greater emphasis on the
multilateral organization such as the South Asian Association for Regional Cooperation focusing
on the nations in the Indo-Pacific region. It serves as a forum to deliberate and align the interests
of the nations and through proactive cooperation unify the ‘Indo-Pacific strategic arc’. Marking
the China unprecedented growth and unwavering attitude which India has been reciprocating
with full force, it is essential for Australia to engage with India and enhance the balance of
power. Australia should take its potential benefits from the increasing growth of China
supplemented by the US security which would help Australia to involve in the middle-power
diplomacy for a stabilized and peaceful region.
Australia’s bilateral trade with ASEAN is over $73.3 billion in 2016. ASEAN is large
community of 10 nations and offers Australia the geostrategic purpose of maintaining stability
and retain complete independence which can be met by diplomatic and strategic engagement.
The defence ties would further provide a stable environment in the Southeast Asian region thus
acting as a strategic shield to the continent (Welch, 2014). Collaboration with ASEAN will
establish a strong social as well as political ties which will catalyze Australia’s hedging effort
against aggressive China. Australia can look forward to ASEAN as potential partner to break the
hegemony of the policies of the China which has been influencing the not only in ASEAN
countries but also in the island countries like Maldives and Sri Lanka which suffered a disastrous
debt trap. Thus Australia should brace up and recognize the loopholes and become more
watchful while recalibrating with China (Nethery, 2014). An alert eye will help to take forward