Aussie’s Unique Position

The country looks like delighted with its privileged position. The Australian Prime Minister, Julia Gillard, achieved an agreement to have annual bilateral summit meeting in her visit to China. A newspaper in Australia reported that the country became the fourth one to have this kind of agreement with China, following Russia, UK and Germany. Wanting for economic opportunities in the country expected to be the biggest economy in the world within next ten years, Australia seems to be trying to secure unique position within the allies with the United States. It is, however, unclear how Australia is balancing its ambition with the need for facing China in East Asian security.

After the meeting with Li Keqiang, the Prime Minister of China, Gillard expressed her expectation on the agreement as saying “When the history of this relationship is written, I think this will be remembered as a big step forward was taken.” It is obviously along with her “hedging” policy, having good relationship with as lots of nations as it can, supposedly to avoid depending on US too much. China treated her with great hospitality, including observation of the parade of People’s Liberation Army.

Australia has enough reason to seek economic opportunities in overseas. Australian carmaker, Holden, announced its intention to cut 500 jobs, suffering from high rate of Australian dollars against other currency that is harming its exporters. Having an agreement of starting direct exchange of Australian dollars with Chinese Renminbi was one of the significance Gillard had obtained in her visit. In other words, Australia wanted Chinese market, while China needed Australian natural resources represented by iron ore. That was the deal.

Australia, however, is still standing between the United States and China. As a traditional ally of US, what kind of security cooperation can Australia offer to China? Is it possible for Australia to cooperate with, or ignore at least, China’s maritime expansion, in the situation that US is careful about China’s anti-access and area denial policy? It is not countable how big, or small, will be the impact on Australia-China relationship, when Australia takes position to deter China in the traditional alliance.

For Japan, Australia has been a close ally within a liberal and democratic framework led by US. In the dispute over territorial issue, Japan expects Australia to be supporting its standpoint. Australia’s approach to China may cause Japan’s disappointment, if it takes a position concerning only economic aspect, without caring about shared value within the ally. It may be closely observed how Australia is developing new relationship with China taking advantage of its unique position.