How Asia can benefit as Trump presidency puts distance between Australia and the US
Australian senator Penny Wong advocates stronger engagement in Asia in light of US president-elect’s inflammatory comments on the one-China policy
Donald’s Trump’s unexpected swerve on the one-China policy has reignited the post-election debate over Australia’s US-centred foreign policy, torn as it is between its top trading partner China and its main ally and security guarantor America.
Ever since Trump was elected president, Australia has, for the first time in more than a decade, been witnessing a split from the bipartisan view of both major parties that the US is central to Australian interests. Senator Penny Wong, who is the shadow foreign minister of the opposition Labor Party, has said that the uncertainty created by Donald Trump also presents an opportunity for Australia to question the centrality of the Australia, New Zealand, United States Security Treaty, or ANZUS, to Australia. She is advocating stronger engagement in Asia by Australia.
Caught between China and US, what Australia has to fear from a Trump presidency
Former prime minister Paul Keating says Australia should “cut the tag” with the US and pursue better engagement with the Association of Southeast Asian Nations (Asean) instead. Greens leader Senator Richard Di Natale says he believes the US is now a threat. Though disengagement from the US has long been central to Green policy, Trump’s election has given it a new impetus.
In this unexpected environment, Australia is also doing something rather unusual – calling for public submissions to its upcoming Foreign Policy White Paper, the first time since 2003.
While the jury is still out on the geopolitical outcomes for Australia during a Trump presidency, the economic concerns have a stronger basis. The broad consensus in Australia on a possible China-US trade war is that its knock-on effects would be felt swiftly and painfully in Australia. China is Australia’s main trading partner for exports, and two-way trade and investment between the US and Australia stands at A$1.5 trillion. China is only the country’s fifth largest investor but the volume of bilateral trade has stayed high even after commodities prices have fallen. An economic downturn in China would depress need for Australian commodities.
