Posted: March 24th, 2023

Effects of the Australia-China Trade Ties on U.S. Foreign Policy in East Asia

Question 1

Australia, a dominant political power, plays key roles in enforcing military and political partnerships in East Asia to maintain its capitalist interests. For that reason, Australia is actively involved in resolving and preventing recurrent conflicts through implementing peacekeeping strategies and engaging in humanitarian operations in the East Asian regions. In addition, Australia offers financial assistance to East Asia to develop the area’s economic stability and align it with other G20 nations. From Hugh White’s perspective, the greatest challenge between the US-Australian relationships is the recently increased bilateral trade between Australia and China. According to Hugh, the last decade has seen Chinese increased demand for Australian exports, a partnership that has immensely improved Australia’s economy. For that reason, the U.S. feels that its strategic relationship with Australia will be affected to the extent of inadequately accessing Asia through Australia’s geostrategic position.

Question 2

The Post-Soviet years saw Russia surrounded by Central Asian independent states, though they hardly contributed in their personal policy making procedures. Therefore, during the entire period, Russia continued to have total influence of Central Asia’s economic, cultural, and political well-being. However, after the disbandment of the Soviet Union in 1990, Central Asia was fully exposed to a strained Post-Cold War era, with its regions experiencing significant economic and political instability. Despite being a large base of nuclear testing and energy resource, this area continued to languish in poverty. In addition, terror groups rose steadily, resulting in occasional civil wars on ethnic lines. However, Central Asia has improved considerably, with business opportunities increasing due to a stabilized macro economy, implementation of actual market reforms, accommodating budgets or monetary policies, improved exports, and reduced inflation levels. On the other hand, the region has challenges of high unemployment rates, stringent trade policies, and bad governance.