Australia new approach called 'realistic'

As Australian media continues to fan the flames of a new Cold War, Foreign Minister Penny Wong has attempted to put a lid on some of the hysterical reporting in recent weeks.

In an address to the National Press Club in Canberra on Monday, Wong put Australia's foreign policy position into perspective, saying the policy must reflect the nation's interests while seeking balance among powers.

Since the Labor government led by Prime Minister Anthony Albanese was elected last year, it has been a slow process of rebuilding relations with China, which had been seriously damaged by the previous Liberal National coalition.

James Laurenceson, director of the Australia-China Relations Institute at the University of Technology Sydney, said Australia must walk a fine line between its strategic partnership with the United States and the economic reality that China represents.

"At times, that can be a delicate balance," he said. "The point is from day one, the Albanese government has accepted that there has been a significant shift in the region's power realities."

Premiers from the states of Victoria and Western Australia have visited China in recent weeks, emphasizing the importance the states place on trade with China.

In her speech, Wong said Australia's foreign policy focus should be on ensuring that "our fate is not determined by others".

She conceded that Asia and the Pacific "face circumstances in some ways unprecedented". "And these circumstances require a response of unprecedented coordination and ambition in our statecraft," she said.

Wong said that a war over Taiwan "would be catastrophic for all". "We know that there would be no real winners, and we know maintaining the status quo is comprehensively superior to any alternative," she said.

'Manage differences'

In Australia's relationship with China, Wong said the Albanese government will "continue to do as we have since coming to office: cooperate where we can, disagree where we must, manage our differences wisely, and above all else, engage in and vigorously pursue our own national interest".

She said that China's "dramatic economic growth has been a driver of Australian prosperity" and expects it to remain Australia's largest trading partner for the foreseeable future, and a valued source of foreign investment.

Wong said like any country, China will "deploy this strength and utilize this influence to advance its national interests".

"At times, these interests will differ from our interests, and from others in the region," she said. "Importantly, China understands national interest as being advanced by favorable outcomes, by reducing the possibility of unfavorable outcomes, and by reducing the space for disagreement or dissent," she said.

But instead of reacting with shock or outrage at China seeking to maximize its advantage, Australia should "channel our energy in pressing for our own advantage".

Ying Zhu, director of the Australian Centre for Asian Business at the University of South Australia, said he thought Wong's speech reflected a more "realistic approach" to China than the previous administration.

He added that Wong has been an impressive foreign minister especially in terms of the Australia-China relationship.

"Rebuilding the relationship has not been easy, but we are starting to see some of that trust being restored," Ying said.

However, former prime minister Paul Keating later noted that Wong could have provided clues to encourage "both the United States and China to find common cause".Keating has publicly stated that the AUKUS submarine deals would put Australia and the region at risk.