Australia Switching Sides, From the U.S. to China

PETER PARKS/AFP/Getty Images

Australia Switching Sides, From the U.S. to China

Australasia needs a replacement for America—and there is only one possible candidate.

Former United States President Barack Obama intended his “pivot to Asia” to be one of the biggest foreign-policy events of his presidency. His most significant move was to create an anti-Chinese alliance. The Trans-Pacific Partnership (tpp) was supposed to form an economic bloc of Asian countries, bringing them closer to America and countering China’s economic imperialism.

Then President Donald Trump took office and destroyed the tpp.

Now, Australia wants to revive it. Except the tpp might no longer revolve around America. Instead, China would be invited to play the central role. Instead of opposing China, the new tpp would dramatically expand China’s influence in the region.

“Losing the United States from the tpp is a big loss; there is no question about that,” said Australian Prime Minister Malcolm Turnbull. “But we are not about to walk away … certainly there is potential for China to join the tpp.”

Trying to Save Face

Already deeply unpopular in the public eye and trailing the main opposition party, Turnbull does not want the collapse of the tpp on his record. The tpp was negotiated over a matter of years by both the Labor and Liberal parties. To be the prime minister upon whose watch the tpp failed will be a black stain on Turnbull’s economic record, so he is doing all he can to salvage the deal.

The Australian prime minister’s offer to China was perhaps an effort to sway Trump—a warning that if America pulls out, Australia will look to one of its adversaries. Australians are increasingly fearful of China and unnerved by increasingly unstable economic relations with America. And desperate times do call for desperate measures. But if this was Turnbull’s ploy, it seems to have failed.

China in the TPP?

This disagreement opens major doors for China. Countries that are included in the tpp would be penalized for buying products from nations outside the agreement (for instance, China). But if China takes America’s place as a party to the agreement, the other nations would have incentives to buy Chinese goods and services and would be penalized for buying American ones. This would also boost China’s efforts to be seen as a globalism-promoting nation and viable alternative to the U.S.

The rise of China puts Australians in a tough position. Do they side with America, a traditional ally and an economic question mark, or do they side with China, a possible threat, yet their largest trading partner?

With Trump putting “America first,” the latter option is looking increasingly appealing.

Whether or not China steps in to save the tpp, one thing is clear: America’s withdrawal from the partnership makes China look good. China does not have political infighting or executive orders sweeping changes in and out. China’s dictatorial political system is full of flaws, but inconsistency is not one of them.

The Asian Alternatives

China has spent the last few years creating its own versions of Western institutions and trade agreements. It has built the Asian Infrastructure Investment Bank, an instant rival to the World Bank.

Here, it scored major victories over America. Early last year, the Washington Times wrote, “The battle of wills between Beijing and Washington over a China-sponsored development bank for Asia is turning into a rout. … The Obama administration has found itself isolated and embarrassed as its top allies lined up this week to join the proposed Asian Infrastructure Investment Bank.”

Australia was among those allies. The cancellation of the tpp will be no different. Australia is looking for an alternative, as is New Zealand.

New Zealand Prime Minister Bill English responded to Trump’s tpp withdrawal by suggesting that New Zealand might switch from the tpp to a China-backed alternative, the Regional Comprehensive Economic Partnership (rcep).

“We’ve got this rcep agreement with Southeast Asia, which up until now has been on a bit of a slow burn,” he said, “but we might find the political will for that to pick up if tpp isn’t going to proceed.”

The rcep is centered on the Association of Southeast Asian Nations (asean), but also includes Australia, China, India, Japan, South Korea and New Zealand. While not China-run, the rcep and asean relationship shifts New Zealand’s trade focus further from America and into Asia—China’s domain.

China is also advancing its “One Belt, One Road” initiative for developing a string of ports and rail routes reaching from China to Europe. This trade initiative could also include Australia. Addressing Australia’s parliament in 2014, Chinese President Xi Jinping said he “welcomed Australia’s participation in the Maritime Silk Road.”

You can also add ftaap to the list of trade-agreement acronyms. The Free Trade Area of the Asia-Pacific was initially put forward by the U.S., but it only took flight once China threw its weight behind it in 2014. This agreement would involve 21 nations in the Asia-Pacific Economic Cooperation—including China, Australia and America.

Then there is Chafta, the China-Australia Free Trade Agreement, which came into force on Dec. 20, 2015. Defending the deal, Malcolm Turnbull told 3AW’s Neil Mitchell, “If we don’t embrace these big markets in the Asia-Pacific, we don’t have a future.”

Filling the Void

With China doing so much to foster economic ties with Australasia, there is little wonder why attention in the region is turning northward instead of 7,000 miles east across the Pacific. Furthermore, the withdrawal of the U.S. from the tpp gives nations in the region even more reason to look to Beijing.

Daily Beast writer David Axe wrote in his article “Donald Trump Is Handing China the World”:

Trump is voluntarily surrendering ground to Beijing on economic, diplomatic and environmental fronts, opening the door to an even greater global role for China that the country’s own growing military will only reinforce.

In his first week in office, Trump severed the economic link to his traditional allies in Southeast Asia and Australasia. While it had flaws, the tpp was designed to hedge China’s growth. Now, allies like Australia are actually offering China America’s position at the table.

For more on how America is losing ground to China, read “China Exploits U.S. Retreat, Seeks World Leadership.”

As Stephen Flurry concluded his Trumpet Daily Radio Show program, “The decline of America and the rise of these new powers, including this Asian power bloc, is one of the most important events in Bible prophecy—a vital stepping stone in God’s plan to intervene in world events. To learn more about this plan, read our free book Russia and China in Prophecy.