REGIONAL PERSPECTIVE
Australia demonstrates the art of riding two horses

How can Canberra remain a staunch and committed US ally and at the same time maintain strong economic relations with Beijing? Local media have called it a balancing act of riding two horses at the same time.
How long can the government Down Under keep this up? Indeed, no one is really thinking about that. For now, Australia enjoys excellent relations with virtually all the major powers - the United States, China and Japan. Asean, which used to be a thorn in its side, has already accepted Australia in its midst as a founding member of the East Asian Summit (EAS). Apart from the EAS and accession to the Treaty of Amity and Cooperation, Australia was also admitted to the Asian Federation of Football last year, which among other things indicated its closer ties with Asia. Australia is playing in the current World Cup in Germany, making it a premier team in this part of the world. Australian scholars on international relations would say that their country is just being pragmatic and more focused on Asia than in the past few years. "There are more Asian policies in Australia now," said Gerard Henderson of Sydney Institute, referring to everything related to things Asian in Australia. This sentiment has been intensified by Australia's relations with China, which have grown from strength to strength. The countries enjoy excellent economic and trade relations. China has become one of the leading importers of Australian energy and natural resources, especially coal, gas and iron, while Australia is a large market for Chinese manufactured goods. This economic interest is paramount. Both countries know the prospects and problems that will follow if these beneficial ties are interrupted. It is interesting to watch how Australia and China deal with controversial issues. Beijing took it in its stride when two of its diplomats defected from their embassy after Australia granted them visas. Canberra has also been candid in comments on issues related to China without patronising Beijing over lack of democratic values or respect for human rights, which is often heard in US rhetoric. According to Henderson, Australia-China relations show the independence and pragmatism of Australian foreign policy, a stance the country has maintained for the past 100 years. He said it was wrong to suggest that Australia followed US policy because the two are close allies. In fact, he reiterates, Australia has its own mind and its own security interests when it comes to external relations. Of course, as Henderson pointed out, Australia is committed to the US alliance and under the Howard administration strategic relations between the two countries have expanded and are at their highest level. So far, Australia does not have to choose either one or the other. "It's a win-win situation," said Dr Malcolm Cook of the Lowy Institute for International Policy, an independent Australian think tank. Like Henderson, he felt that Australia could pursue this policy for the time being because there is no dangerous situation. But if there is a war across the Taiwan Strait, Australia might have to choose sides. "The possibility that this scenario will occur is very small," he said. Cook said that since Australia does not share borders with China, which is the case with many Southeast Asian countries as well, it has an advantage in diplomatic manoeuvring with the Asian giant. Unlike US-China relations, Australia-China ties have more positive elements than threat perceptions. In the former case, he said, the majority of Americans are still fearful of China, seeing it as a threat, while the Australians see China as an opportunity. Paul Kelly, diplomatic correspondent of The Australian daily, also echoed this view explaining that Australia-China relations have a long history going back to the first year of John Howard's government. These bilateral ties are different from those with the US for various reasons. First of all, there has not been any disagreement on policy towards China in Australia. It has been a bipartisan issue with total agreement on the approach to China, so it has not been an issue of contention in domestic politics. The economic factor, Kelly added, is the most important element in Australia-China relations. Australia has agreed to sell energy and raw materials to China for a long time to come. Moreover, there is also consensus that China will in the future replace Japan as Australia's largest importer. Finally, the Australian parliament has never made any commitment to protect Taiwan, as the US Congress has done with its Taiwan Act. To what extent can Australia and China hold on to this relationship without any contradiction? Kelly said both countries would concentrate on what they have in common and downplay their differences. There are few lessons from Australia's handling of its relations with the US and China. It can pursue this win-win policy simply because Canberra has shown unwavering support for Washington as an ally, whether in the war in Afghanistan or in Iraq. This closeness allows Canberra extra room to manoeuvre in its ties with Beijing, which realises that its relations with Canberra are economic, not political in nature. Kavi Chongkittavorn
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