Australia and New Zealand recalibrate their China policies: convergence and divergence

Abstract

Australia and New Zealand (NZ) have in recent years been at the forefront of the growing confrontation between the 'West' and China. Despite very close economic ties with China, both countries have substantially changed their approaches to dealing with the People's Republic. In this article, I take stock of and compare the Australian and NZ recalibrations of their respective China policies, highlighting similarities as well as differences across the two country contexts and over time. It was Australian federal state actors who first embarked on a major 'reset' of China policy, culminating in legislation on espionage and foreign interference in 2018. After a change in government, state authorities in NZ appeared to follow Australia's lead. However, NZ's adjustment of its China policy has been less straightforward, more contested and overall more ambiguous. Small-state theories partly explain NZ's more ambivalent approach. A more comprehensive understanding can be gained by reference to how NZ differs from its Tasman neighbour in terms of strategic outlook, including the paramount importance accorded to trade in its foreign affairs.