Economic gains versus strategic risks stoke our China tensions

[barryqwalsh]

Paul Kelly

• THE AUSTRALIAN
• JULY 01, 2015 12:00AM
• 11 COMMENTS

With Joe Hockey in Beijing this week for the China-led Asian Infrastructure Investment Bank formalities — where Australia is a major shareholder and the US sits on the sidelines — the world is being told China intends to be a rule maker in the global system.

Two great tensions in Australia’s policy are now on display — it is deepening economic engagement in Chinese-sponsored institutions while its strategic analysts in private are convinced a tougher line is necessary against China’s regional assertions and tactics.

This is a challenge for Australian policy without precedent. Whether these two potentially contradictory strands in our national outlook can be reconciled depends on forces largely beyond our control.


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[ThirdTerm]

China has become a regional bully and Australia cannot afford to be a bystander or appeaser when it comes to dealing with a militaristic China despite the deepening economic ties between the two countries. We need to lay down the law to prevent China's further encroachment in the South China Sea and the ANZUS alliance can play a pivotal role along with other American allies such as Japan, while South Korea decided to opt out of the coalition of the willing against Beijing.

A new report says that the US needs to stop China's encroachments, and Australia needs to be prepared to help. So far, Australia's alliance with the US has been a mere bystander to China's great grab. The power of this new report, released in Sydney on Monday, is the idea that the alliance should move from the sidelines and into the hot zone as a bulwark against China's advances. Instead of a "bilateral tie", the ANZUS alliance should become a "regional hub" for US allies and US partners in marshalling forces against Beijing, it says. In fact, Australia should go so far as to arm China's smaller neighbours, according to the report, a joint project of the ANU and an American policy group, the Centre for Strategic and International Studies.
China rocks the boat as Australia and the US watch on