A Deep Dive into Australia and China's 40-Year Relationship

This essay provides an in-depth analysis of the relationship between Australia and China, spanning four decades. It examines the economic ties, including bilateral trade and mutual investments, highlighting the significant growth and interdependence between the two countries. The essay also explores the political dimensions, including the influence of the United States and the strategic challenges faced by Australia in balancing its relationships with both China and the US. It discusses the complexities of Australia's foreign policy, including its defense mechanisms and the impact of its actions on China's perception. The analysis covers the historical context, economic policies, and the evolution of the relationship, offering insights into how Australia can navigate the evolving dynamics of the US-China rivalry. The essay emphasizes the importance of diplomatic strategies and the need for China to understand Australia's alliance with the US, advocating for a balanced approach to maintain a healthy relationship. The essay concludes by highlighting the benefits of the Sino-Australian relationship and its positive impact on the economies of both countries.

Running head: AUSTRALIA AND CHINA AT 40
AUSTRALIA AND CHINA AT 40
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1AUSTRALIA AND CHINA AT 40
This essay discusses the Australian relation with China from various aspects
especially focusing on the economy as well as defence mechanism of these two countries. It
compares the Chinese economic policy with that of Australia’s to reveal the method how
Australia can take advantages from both the US as well as China simultaneously. For doing
this Australia has to plan big and diplomatically because the US and China are rivals to each
other in which Australian may create a triangle. The basic problems that disturb the Austria-
China relations have many layers. By taking antagonising moves against China in 2010,
Australia had created a worst case scenario. Beside these, Australian government is not clear
about their defence position. Somewhere their security and economic policies are supporting
the US military engagements against international terrorism to act against Chinese risks in its
own place. Beside this, the US-Australian relationship has created a feeling of threat in the
mind of China which has affected their relation with Australia.
However, in recent times, both China and Australia have decided to work together to
manage the increasing the US factor in Australian territory. China has to realise that the
relation between Australia and the USA does not particularly target China and it does not
ignite the previous cold war mentality to dominate China. In order to manage subtle tri-
lateralism China needs to realise that salience does not aim to infringe the China’s external
and internal policies. Therefore, china must obey the N-policies such as, non-aggressive, non-
expansionist and non-irredentist to keep a healthy relation with Australia. Acceding to Reilly
and Yuan (2012), Australian government diplomatically balanced the relationship with these
two rival countries by self-consciously isolating its relations with China from its
commitments to the US but this behaviour of Australia did not impinge upon the US-
Australia alliance because Australia’s credit was very deep with the US.
The Sino-Australian relationship has proved to be one of the most special bilateral
relation in the Asia-Pacific region. Now as china has been emerging as one of the greatest

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power both politically as well as economically, Australia has become an important leading
middle power. As China is the biggest market, Australia has become its economic partner as
well as energy supplier. The policies in this bilateral relation have proved to be
interdependent therefore beneficial for both these countries. Over the last four decades the
relationship between China and Australia has strengthened the economy of these countries.
The economic policies have major aspects such as bilateral trade, mutual investments and
other extents of economic co-operation. Despite the fact that both these countries have gone
through many economic ups and downs in these 40 years, this Sino- Australia reflects the
great progress that the countries had enjoyed.
The economic ties included bilateral trade which according to data have grown
gradually every year. For this China has ranked to be the largest trading partner of Australia
and the Sino-Australian total amount of trade combining trades in goods and services, has
reached close to US$100 billion. In the aspect of mutual investment also, Australia has
gained profit due to China’s open up and reform policies. Now, Australia has invested in the
Chinese market in numerous corners starting from architecture, airport landing, bond
transaction, vehicle control, medical equipment, architecture, pharmaceutical products,
environmental management, manufacturing, food processing, telecommunication and IT,
advertisement, insurance and many more. China’s investment has also increased in the
Australian market gradually in these years which include the technical and economic
cooperation between these countries.
Sino-Australian economic relations, therefore suggests that both sides enjoy strong
complementarities as well as low competitiveness despite differences in natural resources,
economic development levels and demand–supply relationships of labour force. Therefore,
there is an amiable relationship of import export. Thus, these 40 years have proved to be
beneficial for both China and Australia greatly.

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References:
Reilly, J., & Yuan, J. (2012). Australia and China at 40 (pp. 142-161). UNSW Press.