By Nick Derewlany
Canberra could struggle to balance its interests as tensions rise over the AIIB and TPP.
Tensions between the United States and China over the Chinese-led Asian Infrastructure Investment Bank (AIIB) are the next embodiment of a hard and soft power battle for economic and political dominance in the Asia-Pacific, and come amid concerns arising from the stalled negotiations for the Trans-Pacific Partnership (TPP). For Australia, a key focus of its foreign policy should be how to balance its economic ties with China and its cultural ties with the United States; appeasing both without getting in the middle of an ugly tug-o-war that forces Canberra to take sides.
Officially, both the U.S. and China have attempted to downplay the gravity of the tussle. Hugo Llorens, U.S. Consul General, in a guest lecture given at the University of Sydney, reassured students that “Australia does not have to choose between the United States and China.” But while it is true that Australia is not at a point where it needs to make such a choice, the reassurance misrepresents the dynamic of Australia being caught in the middle of a power struggle between the worlds two largest economies.
Read the full story at The Diplomat