Time for a whole-of-government China strategy to build trust between Australia and China

This paper examines how Australia might build trust and cooperation with China while strengthening its ties with Japan. It identifies the particular challenge for Australia, as a middle power, of preserving its

significant economic interests with Northeast Asia, as well as its strategic interests in a stable and peaceful region. It argues that Australia's policy settings on China, in particular, need to strike the right balance between ambition as a middle power and realism about the influence it can bring to bear.

The paper addresses whether Australia's strengthening ties with Japan make it more difficult to build trust with China and proposes policy options for Australia to deal with China's growing economic, political and military power in the Indo-Pacific region in a way that builds trust in the relationship. It concludes that the risks to Australia's relations with China from Australia strengthening its relations with Japan are minimal and manageable but that Japan-China tensions increase the challenges for Australia.

This paper was also published in the Indo-Pacific Strategic Digest series.

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