The Australian federal government is under increasing pressure to enhance its diplomatic, trade, and security relations with Taiwan. This call to action follows a new report from the United States Studies Centre (USSC), which warns that Australia’s current cautious approach risks stagnating the relationship. The report, titled Australia-Taiwan Relations: Policy Options and Priorities for Engagement, was authored by a group of academics and draws on insights from former senior officials, including ex-Department of Foreign Affairs and Trade (DFAT) secretary Peter Varghese, former Australian Signals Directorate director-general Rachel Noble, and former chief of joint operations Lieutenant General Gregory Charles Bilton.
China considers Taiwan part of its territory and has been intensifying pressure on the island, notably through increased military exercises near Taiwan. These actions have been described by a top US general as “rehearsals” for a potential invasion. Report co-author and USSC senior defence adviser Peter Dean emphasized the need for Australia to find new ways to deepen its relationship with Taiwan, noting China’s efforts to diminish Taiwan’s diplomatic presence globally.
Expanding Diplomatic and Economic Engagement
The report suggests that Australia should expand its diplomatic presence in Taiwan, consider ministerial visits, and enhance cooperation across various sectors, including green energy. It also recommends increasing public service awareness about Taiwan and cautiously exploring defense cooperation, such as appointing a de facto defense attaché in Taipei.
Despite Taiwan being a significant trading partner for Australia, the federal government’s adherence to the One China policy constrains the relationship. This policy recognizes the People’s Republic of China (PRC) as the legal government of China and merely “acknowledges” Beijing’s stance that Taiwan belongs to the PRC. Consequently, while informal political ties and a robust economic relationship are possible, Taiwan has expressed frustration over Australia’s reluctance to support its bid to join the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) or to explore formalized trade agreements.
Challenges and Strategic Considerations
The USSC report warns that Australia’s focus on maintaining stable relations with Beijing has unintentionally eroded Taiwan’s trust in Australia as a strategic partner. It argues that other like-minded nations have been more proactive in expanding their relationships with Taiwan. The report criticizes Australia’s cautious approach, stating that it hampers the development of a sophisticated long-term policy on Taiwan.
While acknowledging the sensitivity of expanding defense ties with Taiwan, the report suggests that Australia could assist Taiwan in preparing for potential conflicts by providing logistical and material support for dual-use technology and facilitating direct contact between Taiwanese diplomats and the Australian Defence Department.
“Defence-to-Defence relations takes us right up to the boundary line of a state-to-state relationship and in the end that is a risky change to the status quo,” Peter Varghese noted in the report, expressing concerns over the implications of such cooperation with Taiwan.
Economic Opportunities and Broader Implications
Beyond defense, the report advocates for bolstering economic ties through new supply chains for critical minerals, exploring opportunities in emerging technologies like batteries, and fostering cooperation via new state and city partnerships. Professor Dean highlighted the need for a broader public discussion about Taiwan’s critical role in global supply chains and the potential consequences of any invasion or blockade.
“We need to think about this as a regional issue and management problem, which isn’t just about the China–US rivalry, or over whether we’d go to war over this,” Professor Dean stated. “By focusing solely on the nightmare scenario, that’s narrowed the debate and that’s almost then narrowed the policy discussion and policy options.”
The report does not explicitly recommend that Australia publicly support Taiwan’s CPTPP bid but suggests exploring opportunities with other countries to facilitate Taiwan’s engagement with the trade pact. There is a consensus among experts that Australia could at least propose opening negotiations on Taiwan’s accession.
Looking Forward
The call for Australia to strengthen ties with Taiwan comes at a time of heightened geopolitical tensions in the Asia-Pacific region. As other countries take steps to prevent conflict and maintain the status quo, Australia’s policymakers face the challenge of balancing strategic interests with diplomatic sensitivities. The debate over Taiwan’s significance extends beyond security concerns, touching on economic and regional stability issues that will likely shape Australia’s foreign policy approach in the coming years.
