Read The Times Australia

Daily Bulletin

China enters 2021 a stronger, more influential power — and Australia may feel the squeeze even more

  • Written by: James Laurenceson, Director and Professor, Australia-China Relations Institute (ACRI), University of Technology Sydney

Great power competition in the Asia-Pacific region has been building for years. But COVID-19 has turbo-charged the shifts taking place and China is finishing 2020 in a significantly stronger position compared with the US than when the year started.

Meanwhile, Canberra’s relations with Beijing continue to deteriorate and there’s little reason to be optimistic that a sudden, positive turnaround will be seen in 2021.

As competition rather than cooperation has become the dominant frame through which both Beijing and Washington view their bilateral relationship, each is increasingly sensitive to evidence that other countries in the Asia-Pacific region are supporting their opponent.

The fundamental driver of China’s hostility towards Australia in 2020 stems from its assessment that Australia’s leaders have reneged on earlier commitments to never direct the country’s security alliance with the US against China.

Prime Minister Scott Morrison has appealed for Australia and other middle and smaller powers to be granted “greater latitude” in how they manoeuvre between the US and China in the future.

But the University of Sydney’s James Curran cautions against unrealistic expectations:

Great powers simply don’t dole out strategic space to others.

China’s power on an upwards trajectory

At the end of 2019, China’s GDP stood at US$14.3 trillion. This was two-thirds that of the US GDP of $21.3 trillion.

The fallout from COVID-19 has accelerated the trend in China’s favour. The International Monetary Fund’s latest growth forecasts suggest China’s economy will jump from two-thirds to three-quarters the size of the US by the end of 2021.

And when cost differences are accounted for and the two economies are measured in terms of their respective purchasing power, China’s GDP is actually already 10% larger than the US.

China enters 2021 a stronger, more influential power — and Australia may feel the squeeze even more Retail sales grew by 5% in China in November, compared to the same month last year, as the country’s economy continues its strong recovery. Yang Jianzheng/AP

According to the Lowy Institute’s “Asia Power Index”, which tracks power in the economic, military, diplomatic and cultural domains, the US still comes out on top, but its lead over China has been cut in half since 2018. This mainly reflected losses by the US rather than gains by China.

And even before COVID-19 hit, a survey of business, media and civil society leaders in Southeast Asia showed that Beijing was considered vastly more influential than Washington in the region, though this increasing power was viewed with apprehension.

Nearly half said they had little to no confidence in the US as a strategic partner or provider of regional security.

And when asked if the Association of South East Asian Nations (ASEAN) was forced to align itself with either the US or China, a majority in seven of the 10 ASEAN member countries chose China.

The past year has also delivered dividends for China’s leaders domestically, with most citizens giving them high marks for their handling of the public health crisis, despite some initial anger of the government’s early attempts to cover up the severity of the pandemic.

This reinforces already high levels of overall trust in the central government.

The contrast with the US in this regard is stark. In May, a cross-country survey revealed that 95% of Chinese respondents had trust in their government, compared with just 48% in the US.

Read more: US-China relations were already heated. Then coronavirus threw fuel on the flames

Yet, China’s leaders still seem insecure

All of these “wins” would naturally provide impetus for China’s international behaviour to become more confident and assertive.

But President Xi Jinping’s worldview is another factor. In September, Xi exhorted Communist Party cadres to “maintain a fighting spirit and strengthen their ability to struggle”. The word “struggle” appeared more than another 50 times in the same speech.

The Lowy Institute’s Richard McGregor says this reflects Xi’s view that China is in an

existential struggle against an implacable enemy dead-set on destroying China.

China’s diplomats had already been primed to embrace a “fighting spirit” in a speech delivered by Foreign Minister Wang Yi last November.

Read more: What's behind China's bullying of Australia? It sees a soft target — and an essential one

All of this has meant that rather than projecting a self-assured poise, China’s international behaviour has frequently veered in the direction of bullying fuelled by insecurity.

Australia has been on the front lines of this treatment — dialogue on the leader and ministerial level has been refused, exports have been targeted and propaganda campaigns have been deployed.

Beijing’s intransigence has predictably led to the strengthening of coalitions like the Quadrilateral Security Dialogue (comprised of the US, Australia, Japan and India), as well as deeper conversations among Japan, India and Australia about how to build greater resilience into supply chains that are currently heavily exposed to China.

China enters 2021 a stronger, more influential power — and Australia may feel the squeeze even more China warned Australia and Japan will ‘pay a corresponding price’ if a new defence pact signed between the countries threatens its security. Eugene Hoshiko/AP

Greater use of carrots than sticks

There is some evidence China is beginning to recognise its over-the-top behaviour is counterproductive, at least towards some countries, and make greater use of carrots rather than sticks.

Its “vaccine diplomacy” in Southeast Asia is a case in point.

Read more: China wants to be a friend to the Pacific, but so far, it has failed to match Australia's COVID-19 response

COVID-19 has hit Indonesia particularly hard, hit with more than 600,000 total cases so far. But just last week, Jakarta received 1.2 million doses of a vaccine manufactured by a Chinese pharmaceutical company, Sinovac.

China is touting this effort a “Health Silk Road”, with pledges to provide billions in aid and loans to mostly developing countries to help them recover from the pandemic.

China enters 2021 a stronger, more influential power — and Australia may feel the squeeze even more Boxes containing coronavirus vaccines made by Sinovac arriving last week at a facility in Indonesia. Indonesian Presidential Palace/AP

Australia won’t have much latitude with a stronger China

In the case of Australia, however, China is unlikely to put the stick down any time soon.

As Dirk van der Klay, a research fellow at ANU, explains, painting a stark contrast between Southeast Asia and Australia serves the purpose of reminding the region of the benefits of staying in Beijing’s good books — as well as the costs of crossing it.

While countries like the US, Britain and France have at least offered Australia some rhetorical support in its China predicament, Australia’s most significant Southeast Asian neighbours have been notably quiet.

With China’s relative power set to grow further in 2021, Canberra might feel even more uncomfortable. But as former senior Singaporean diplomat, Bilahari Kausikan, remarked in October, Australia is “not in a unique position” as “almost everybody” in the region faces the same challenge of managing relations with China and the US to maximise their economic and security interests.

Australia’s unfortunate distinction is that because its relations with China have already sunk to such depths, it has less ability to negotiate a path between the two great powers.

Elevating partnerships with countries like Japan, India and Indonesia offers one way forward, but alongside this needs to be a pragmatic strategy for getting the China relationship at least back on an even keel.

Tokyo, New Delhi and Jakarta have all had serious challenges with Beijing, but their relations never fell to the depths of the current China-Australia tensions. These countries might offer some useful advice here, too.

Read more: Timeline of a broken relationship: how China and Australia went from chilly to barely speaking

Authors: James Laurenceson, Director and Professor, Australia-China Relations Institute (ACRI), University of Technology Sydney

Read more https://theconversation.com/china-enters-2021-a-stronger-more-influential-power-and-australia-may-feel-the-squeeze-even-more-150943

Business News

How Telematics Helps Australian Companies Improve Productivity

Operating a commercial fleet in Australia is a uniquely demanding endeavour. Between the sprawling urban sprawl of cities like Sydney and Melbourne and the immense, unforgiving stretches of the Outb...

Daily Bulletin - avatar Daily Bulletin

Inside the Icon: The BridgeMuseum Officially Opens at the Sydney Harbour Bridge

A bold new way to experience one of Australia’s most recognisable landmarks has arrived, with BridgeClimb Sydney officially opening the all-new BridgeMuseum.  Located inside the Sydney Harbour Brid...

Daily Bulletin - avatar Daily Bulletin

Is Your Brand Showing Up in AI Search? Most Melbourne Brands Aren't.

The New Front Door Nobody Told You About Something changed. Quietly. Without a press release. The way buyers find businesses in Australia has been rewired. Not replaced, rewired. Google isn't dead...

Daily Bulletin - avatar Daily Bulletin

How Australian Businesses Can Measure SEO ROI

SEO can feel vague when you are staring at a dashboard full of numbers that do not clearly connect to revenue. The key is to measure the right signals in the right order, then tie them back to outcome...

Daily Bulletin - avatar Daily Bulletin

How Commercial Roller Shutters Improve Site Security Without Slowing Operations

Security upgrades can be frustrating when they make everyday work harder. A door that takes too long to open, creates bottlenecks at shift change, or fails at the worst time can turn “better protectio...

Daily Bulletin - avatar Daily Bulletin

Why a Document Destruction Service Still Matters for Modern Businesses

Businesses generate large volumes of information every day, from staff records and contracts to invoices, reports and customer files. While attention often focuses on how documents are stored, the way...

Daily Bulletin - avatar Daily Bulletin

Bicycle Rack Safety and Space-Smart Storage

Bike storage problems usually show up as small annoyances first: tangled handlebars, scratched frames, and bikes that topple when you pull one out. Over time, those issues become safety risks, especia...

Daily Bulletin - avatar Daily Bulletin

How to Tell if a Childcare Centre Is a Good Fit for Your Child

Choosing childcare can feel like you’re making a huge decision with limited information. Tours are short, centres are often on their best behaviour, and your child might act differently in a new space...

Daily Bulletin - avatar Daily Bulletin

Car Import Timeline: What Usually Happens at Each Stage

Importing a car into Australia can feel confusing because multiple agencies and checkpoints are involved, and the timeline is shaped as much by paperwork quality as it is by shipping speed. The most u...

Daily Bulletin - avatar Daily Bulletin

The Daily Magazine

Gold Migration Lawyers in Liquidation: How the Closure Affects Your ART Appeal

If your appeal was with Gold Migration Lawyers, a recent change to how the Tribunal decides cases ...

The pressure cooker: life in urban Australia in 2026

Australian cities have always been demanding. Long commutes, rising housing costs, busy schedules a...

What Actually Makes a Good Criminal Lawyer in Melbourne

Most people only think about this question once. That is usually too late. Most people charged wi...

Why Working With A Chatswood Tutor Can Improve Academic Performance

Academic expectations continue increasing for students across primary school, high school, and senio...

Is It Worth Getting Solar Panels in Melbourne?

The real question is not whether solar works in Melbourne. It works. The question is what it is co...

How A Diploma Of Project Management Builds Practical Skills For Modern Work Environments

Developing the ability to plan, execute, and deliver outcomes efficiently is a key requirement in to...

How to Choose the Right Football for Every Level

Choosing a football may seem straightforward, but the right option depends on who will be using it a...

What to Ask a Wedding Photographer Before You Book

Booking a wedding photographer can feel deceptively simple: you like the photos, you like the vibe...

Why Stress Relief For Dogs Is Essential For Emotional Balance And Long-Term Wellbeing

Managing emotional health is just as important as physical care when it comes to pets, which is why ...