What is necessary for a flourishing Australia-China policy?

Economic Challenges and Opportunities

As was outlined in the beginning of this paper, Australia’s China policy needs to allow China to continue to develop and mature economically. It is fundamental that Australia’s policy towards China is accommodating and helpful - because a strong, prosperous China is necessary for the strength of Australia, the strength of our region and the stability of the world.

Promoting economic co-operation between Australia and China has been of paramount importance to previous governments due to the significance of China’s role in Australia’s economic prosperity. China’s investment in Australia has traditionally been concentrated in the natural resources sector, but important projections suggest that future governments will need to prioritize opening new areas of investment including agriculture, financial services and infrastructure. This should be complimented by other new sources of productivity growth in areas such as tourism and education. The following policy recommendations are necessary to ensure diversity and strength in the Australia-China economic relationship:

• It is urgently necessary to finalise the Free Trade Agreement with China. This will give Australia access to the large emerging middle class of consumers that are beginning to drive the Chinese and global economy.
• The government needs to encourage Australian interaction with the immense China market in the early stages of economic development. By being involved early, Australia proves its support and commitment and will be in a good position to capitalise on more diverse opportunities to engage with Chinese companies in the future. This will also ensure Australia is prepared for a time when Chinese companies become more innovative and creative on a grand scale. This will be lucrative for Australia, especially if partnerships in areas such as technology, sciences, renewables and sustainability can be secured.
• Mitigating the threat that Australia sees in Chinese state owned enterprises (SOE’s), particularly where ownership of land is involved, is another important step. A Lowy institute poll taken annually since 2009 suggests consistent unease exists about Chinese investment in Australia. In 2013, a majority of Australians (57%) still consider that “the Australian government is allowing too much investment from China”.
• It is necessary for Australia to seize opportunity in China’s fast growing inland provinces. While many Australian companies are already active in western China, this is an area that is fast becoming attractive to other countries because it is central to the innovative, high-skills, high-tech growth of China. Competition here will be tough and the Australian government needs to play a significant role in facilitating business links and ensuring Australian businesses have an open market to work in.
• In addition to these points, Australia should support the development of the non-state sector in China – many of which are involved key technical sectors. A more comprehensive plan for engaging with the non-state sector would provide greater incentives investment in Australia as well.

The most important thing here is to assume that future shared economic challenges will be much easier to navigate if we work together. By ensuring the environment for Chinese investment is more welcoming and by diversifying the nature of economic interaction with China, Australia can ensure the same level of economic interaction remains and that it can be sustained into the future.

Cultural Challenges and Opportunities

Cultural policy is a crucial part of an effective Australia China-policy, yet when viewed in direct comparison to other facets of Australia’s China-policy, it is revealed to be quite lacking. 

The Founding Director of the Australian Centre on China in the World, Geremie Barme, suggests that the strength of the economic and strategic relationship is being compromised by a cultural disconnect and underutilised civilian links, and should be a more important point of focus.

While various progressions have begun to target this, for example Kevin Rudd’s aim to make Australia “not just the most Asia-literate country in the collective West but also the most China-literate country”, there are more targeted things that Australia’s China-policy can be doing to ensure cultural opportunities are seized.

• It is necessary to create an Asian literate society who understand the subtle particularities of the Chinese culture beyond the superficial. This has been well established with specialised tertiary research centres at ANU and the University of Sydney as well as the Confucius Institute for language study. However, it is evident that the strongest links exist at elite institutions within Australia. Increasing interaction between more diverse educational institutions will make China accessible for a wider variety of Australians.
• There is a very strong Chinese community in Australia whose skills and networks are underutilised. There are currently 150,000 Chinese students in Australian universities who could help with cultural engagement and understanding of the country. Many students have relationships in China which can be accessed and utilised in ways that have not been attempted yet. By tapping into these existing networks, civilian relationships between China and Australia would grow stronger.
• Creating links between Australian and Chinese journalists is another important way of advancing cultural relations.Journalism in China has grown to become a more diverse, liberal profession in recent years. Australian foreign correspondent John Garnaut observed the degree of professionalism in Chinese journalism increase exponentially in the past 5 years and it seems this change could be better utilised. Offering exchange programs between Australian and Chinese journalistic institutions offers great potential for a deeper understanding to be developed between the two countries. 

It is difficult to imagine what Australia would currently look like if it weren’t for our critical interaction with our great neighbour. As Australia continues to navigate the 21^st century, it is important to recognise the crucial importance China will continue to have in our region and in our world. By implementing effective China policy that helps and does not hinder the development of China, and by ensuring Australia’s China-policy is not economic-centric, the Abbott government will find itself in a wonderful position where opportunity can be seized and challenges overcome for a prosperous future.