China’s “friendly neighbourhood diplomacy” has consequences for Australia

The “Asian values” debate is back on the agenda while the Trump administration is MIA.

Carolin Kautz

12 May 20254 min read

China is making a drive for a “friendly neighbourhood diplomacy”. Last month, the Chinese government held a “central conference on work related to neighbouring countries” in Beijing. The conference brought together leading figures from the Chinese Communist Party and Chinese government to discuss foreign policy objectives in the region.

Shortly thereafter, President Xi Jinping embarked on a state visit to Vietnam, Malaysia and Cambodia. Out of the three countries, the relationship with Vietnam is probably closest and the joint statement that emanated from this state visit is the longest and most detailed. The statement includes a number of areas for further cooperation, including in infrastructure development, customs procedures and the establishment of a “3+3” strategic dialogue mechanism on diplomacy, defence and public security. The Chinese foreign ministry also explicitly pointed to the need for increased cooperation because “a single small boat may not survive a ferocious storm; only by working together can we sail steady and far”.

The visits to Malaysia and Cambodia included a similar Chinese charm offensive. In Malaysia, Xi called for increased high-level strategic coordination, economic cooperation in cutting-edge industries and deepened societal exchange. In Cambodia, he underlined China’s support for Cambodia in developing its own path of development. Formulations like this are common Chinese diplomatic rhetoric. Nevertheless, paired with a multitude of cooperation agreements that Xi signed in Vietnam and Malaysia, they set a very different tone compared to actions of the current US administration.

Finally, Chinese state newspaper People’s Daily recently reported on the inauguration of three roads in Cambodia that had been funded by China. The paper heralded this as the “continuous development of China-Cambodia friendship”. Similarly, China has in the past also been involved in the construction of standard-gauge railway tracks in Vietnam, more closely connecting the trade networks of the two countries.

To Lam, general secretary of the Communist Party of Vietnam, right, with China's Xi Jinping in Hanoi (Li Xueren/Xinhua via Getty Images)

It might be tempting to dismiss these activities as business as usual and as continuing propaganda efforts. However, in light of the upheavals in the current global order, something bigger is at play here.

Since the beginning of the second Trump administration, the Chinese government has tried to globally portray itself as a reasonable player interested in upholding the global trading order that the US government seems to have lost interest in. The Chinese government has continuously voiced its concerns about “unilateralism” and infringements on this global order.

More specifically, and beyond official foreign policy rhetoric, China is trying to strengthen its ties with countries that are also threatened by American trade measures. The flurry of activities in the region over the last few weeks show a clear interest of the Chinese government in implementing itself as an alternative friendly power in the region. In other words, the Chinese government is already busy trying to fill the gaps that the US is leaving under a Trump administration.

Multilateral engagement with different powers has always served Australia well and that has not changed.

China is attempting to create a community around “Asian values”. The goal of this is to create a stronger regional and explicitly Asian identity that is modelled as a counterpart to the United States and draws countries in Asia closer to China. For example, in his speech during the visit to Cambodia, Xi Jinping called China and Cambodia “important members of the big Asian family” and stated that “Asia now stands at a new starting point of collective rise”. Similarly, the Chinese press reported on Xi’s visit to Malaysia that he had called for upholding the “Asian values of peace, cooperation, openness and inclusiveness”.

None of this rhetoric indicates yet how successful China is going to be with this latest charm offensive. Independent of that, it is busy right now to create an impression of itself as the more attractive cooperation partner. Depending on the further development of American trade policies, it might be well positioned to move into this spot.

For Australia, there are two take-aways from this. First, China is keen on being seen as a reasonable and reliable partner interested in maintaining stable trade relations. This will probably also extend to its relations with Australia. However, at the same time, Australia should be careful to maintain its position between the great powers and not be pulled too far in one direction. Multilateral engagement with different powers has always served Australia well and that has not changed.

Second, Australia should now invest significant resources into economic and political relationship-building in the Asia-Pacific. China is actively working on expanding its economic and political clout in the region and filling the void that the Trump administration is leaving. If Australia wants to diversify its own relations with countries in the Asia-Pacific region and improve economic and political partnerships, now is the time. To use a metaphor favoured by US President Donald Trump, the current upheavals in global power relations mean that the cards in the Asia-Pacific might be reshuffled as well. China has picked up its cards and Australia should do the same.

About the author

Carolin Kautz

Carolin Kautz holds a PhD in contemporary China studies with a political science focus from the University of Goettingen/Germany.

Topics

China