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Diplomacy·Trade & Economy

Australia walks tightrope between US alliance and China economic ties

Tuesday, 29 September 2026, 06:32 · 1 min read

Australia is deepening its military partnership with the United States — including joint exercises with American and Japanese forces and a nuclear submarine deal under the AUKUS pact — even as public trust in Washington has fallen to just 31%, according to the Lowy Institute's annual poll. The balancing act is complicated by the fact that China, despite ongoing diplomatic tensions and fresh tariffs on Australian beef, remains Australia's largest trading partner and is viewed by a majority of Australians (61%) as an economic partner rather than a security threat. With former Prime Minister Kevin Rudd warning of 'radical changes' driven by China's rise and American unpredictability, Australia faces mounting pressure to decide how firmly it can lean on either superpower without compromising the other relationship.

Sources
BBC World — The Frenemy: How Australia navigates superpower rivalry ↗︎
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