AUSTRALIA AND THE WORLD 3
Running head: AUSTRALIA AND THE WORLD 1
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Institution
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Australia and the world
Introduction
Since Australia’s diplomatic recognition of China in 1972, contacts between the two countries grew culminating into the formation of the Australia-China council in 1978. The council’s task was to improve and develop relations cultural relations with China. The council served Australian interests for four decades before the government established the National Foundation for Australia-China relations on 29 March 2019. Foundation’s board is tasked with broadening the scale of engagement between Australia and China in agriculture, health and aging, environment and energy, and infrastructure (DFAT 1). The bilateral relationship with China is essential to Australia’s national interest as it promotes economic, strategic, and diplomatic benefits. China matters to Australia since deepened bilateral relations will lead to development, GDP growth, and cultural exchange.
Economic relationship
Menadue says that the current wave of economic relations began with the Whitman government in 1972 and has steadily grown to an extraordinary extent. Australia’s economic relationship with China yields trade and investment, thus contributing to GDP growth. During the fiscal year 2016, Australia-China bilateral trade was valued at $155.2 billion. A third of Australia’s export by value land in China, accounting for $93 billion in 2016, and imports rose to $62.1 billion (DFAT 2). China is Australia’s largest trading partner making Australia, a G20 country that is most dependent on China in terms of export revenue (Gill, 2017).
China is Australia’s fifth most significant direct investor making investments totaling $41.9 billion in 2016 (DFAT 2). Gill adds that Chinese tourists comprise the largest cohort of visitors coming to Australian hospitality and comprise the biggest spenders. Inflows of capital facilitate domestic employment through investment in projects and liberalization policies. Trade agreements such as ChAFTA deliver economic benefits to Australia by improving core competencies in the Chinese market, employment creation, and boosting economic growth. ChAFTA provides preferential treatment for Australian products exported into China. Analysts from the Department of Foreign Affairs project that, China will account for 43% percent of global growth in agricultural demand by 2050 (DFAT 3). Australia is set to benefit from China’s rising demand for high quality agricultural and food products. Therefore, Australia’s bilateral economic relationship with China enables the growth and development of the economy through cost-cutting, economies of scale, and the creation of employment. Australia gains access to the Chinese market. China remains a top market for Australian exports of grains, meat, dairy, wine, seafood, fruit, and nuts. Demand for cold-chain logistics capacity is growing to ensure consistent quality supply. The rapid increase in the number of direct flights between China and Australia (currently around 200 a week in the summer peak period from 17 Chinese cities) provides opportunities to expand fresh produce exports.
Strategic relationship
Australia and China have made security and defense agreements, thus providing vital support. Australia enjoys pursuing joint ventures with China in matters of geopolitical importance. For instance, in 2013, Australia and China agreed to cooperate on shared development objectives with the first project under the MoU occurring in Papua New Guinea in 2016, targeting malaria (DFAT 2). Australia benefits from cultural exchange with China due to deepened community and social links. Educational exchange programs brought in 157000 Chinese students into Australia in 2016. The number of overseas students grew by more than 15% in the last year, with China taking a large percentage. Cultural exchange initiatives provide information about Australia in China, “allowing for strengthened people-to-people and institutional relationships, through study and internships taken by Australian undergraduate students” (DAFT2). Australia is set to benefit in the long term from a strategic relationship with China. The Australian Treasury estimates that by 2030, the Chinese GDP will hit $US 42 trillion making it a global superpower (Menadue, 2018). China is a global superpower with a long and proud tradition and history that Australia can utilize to secure economic growth in the 21st century. Menadue believes that China, with growing power and influence, will insist on guarding the sea and land territories, thus providing strategic importance to Australia.
Diplomatic relationship
Diplomatic relations between Australia and the People’s Republic of China commenced in 1972 followed by the establishment of an embassy in 1973. Australia and China enjoy strong economic and trade complementarities, which form the basis of the bilateral relationship. Diplomacy, in this case, implies that both Australia and China acknowledge their historical, political, and social differences leading to extensive bilateral political engagement. Australia’s growing diplomatic network in China” includes the embassy in Beijing, Consulates in Shanghai, Guangzhou, Chengdu, and Hong Kong” (DFAT 2). Also, 11 Austrade offices serve the greater China with Australia participating in activities promoting practical cooperation with China. For instance, Gill asserts that over the past four decades, “115 sister-city and sister state relationships have formed between Australia and China” (Gill, 2017). Maintaining strategic relationship enables Australia to achieve major foreign policy and national security goals.
Conclusion
Gill says that Australia needs to rethink its interactions with China for strategic and long-term purposes. He says that the undertaking will require, “full engagement of Australian society; politicians, public servants, military officers, business leaders, educational institutions, youth groups, and community associations” (Gill, 2017). Australia needs to makes China a top priority to align with the future. First, Australia should make China the focus of regular cabinet meetings to adopt a comprehensive strategy on China. Second, Gill says that Australian businesses and state and federal governments should jointly support the establishment of a long term, extensive exchange programs for the next generation. Such programs provide the first-hand experience to both countries political and economic landscapes and create professional networks and personal friendships. In addition, future bilateral relations will require Australia to have a peak national body with a mandate to advance the Australia-China relationship by serving as an honest broker and reliable safety net with activities ranging from national lecture series, workshops, retreats, and educational programs in Australia and China.
References
Gill, B., & Jakobson, L., (2017). Rethinking Australia’s relationship with China. Retrieved from https://www.eastasiaforum.org/2017/04/13/rethinking-australias-relationship-with-china/
Menadue, J., (2018). Four Waves of Australia’s Relationships: UK, US, Japan, and China – AIIA. Retrieved from http://www.internationalaffairs.org.au/australianoutlook/australianoutlook-four-waves-australia-relationships-uk-us-japan-china/
DFAT 1- https://dfat.gov.au/people-to-people/foundations-councils-institutes/nfacr/Pages/request-for-submissions-shaping-the-national-foundation-for-australia-china-relations.aspx
DFAT 2- https://dfat.gov.au/geo/china/Pages/china-country-brief.aspx
DFAT 3 – https://dfat.gov.au/trade/agreements/in-force/chafta/fact-sheets/Pages/chafta-fact-sheet-agriculture-and-processed-food.aspx