Orchestrating relations between its American security ally and increasingly crucial Chinese trading partner constitutes perhaps the major foreign policy challenge now confronting Australia. The Howard government insists that it can pursue such diplomacy without having to choose between the US and China in the event of a future great power regional confrontation. Both Washington and Beijing, however, appear intent on pulling Australia into their own orbits of influence. This article contends that neither of them will be content to allow Australia to apply a 'discriminate engagement' policy toward their own regional interests if Sino-American strategic competition intensifies over Taiwan or throughout the Asia-Pacific region. It reviews Chine...