Australia-China relationship: walking the tightrope
Since recognising the People's Republic of China (PRC) in 1973, Australia has sought to tighten her relations with the Asian giant because of its rising economic, political and strategic weight. The economic relation in particular is of paramount importance to Australia. In fact, China is the main destination of Australian exports and the main source of Australia's imports. In other words, China is Australia's main trading partner.
On the other hand, given Australia's inescapable strategic alliance with the United States, the country has tried to walk the thinnest tightrope between her two partners and avoid situations that might lead to conflict - for example with regards to the Taiwanese question. Indeed, one of the issues raised more often in debates around Australian foreign policy is what stance would she take in case of China-US confrontation. Would she be able to circumvent US alliance? Or, on the contrary, would she be prepared to lose her main economic partner? Put it differently, would Australia choose economic prosperity or security? From China's point of view, Australian imports consist of mainly raw materials and energy, both desperately needed by China's expanding manufacturing industries. Not to mention the somewhat questionable alliance of Australia and China over the harvesting of logs in Papua New Guinea through Australian enterprises often accused of lack of transparency, bribery, neo-colonialism and so forth (see On Our Land - Oakland Institute). Among services, education is also important given the large influx of Chinese students in Australian universities.
The importance of the economic ties for both countries has entailed the creation of a Trade and Economic Framework (TEF) and negotiations for a Free Trade Agreement (FTA). In order not to upset the Chinese establishment, Australia has tried to avoid a thorough questioning of Chinese poor record on matters of human rights protection. However, one point of friction are the recurring demonstrations of the Falung Gong movement in Australia, including protests outside the Chinese embassy in Canberra. Recently, WikiLeaks scandal tainted Australia-China relationship with the release of cables between former US Secretary of State Hillary Clinton and then Australian Prime Minister Kevin Rudd (who, incidentally, speaks Mandarin and presented himself as a true friend of the Chinese) regarding China's rise and the necessity of keeping the use of force as last resort against a potentially troublesome and untrustworthy Superpower such as the PRC.
Australia's reputation as US 'deputy sheriff' in the Asia-Pacific region has diminished her credibility as an independent actor. The Australians are all too aware of this and try their best - albeit not always successfully, as in the case of WikiLeaks revelations - to keep a neutral stance in such cases where the interests of her main strategic partner collide with her own economic and trading interests. Very pragmatically, both China and Australia appear to successfully overcome political differences for the sake of economic partnership.