Australia, China and the United States: maintaining an equilibrium in the Indo-Pacific

Looking into the increasing economic and political strength of China, this report shows how its relationship with both Australia and the United States will change.As tensions rise in the South China Sea, the world is watching nervously as events unfold. Although not a party to the disputes, Australia nonetheless finds itself uncomfortably near the centre of the geo-strategic dynamics in the broader Indo-Pacific region. It has been balancing the two major players, the United States and China, each of which is critical to Key Points Australia finds itself uncomfortably near the centre of the geo-strategic dynamics in the broader Indo-Pacific region. It has been balancing the two major players, the United States and China, each of which is critical to Australia’s security and economic well-being. Australia is in something of a Catch-22 situation, as even a slight tilt towards either China or the US could be damaging to its relations with the other. Australia’s grand strategy, therefore, should not be focussed on fighting a war with an Asian power. Instead, the focus should continue to be on working with the Asian powers and seeking even greater co-operation and engagement in the region. Strategically speaking, India and Indonesia could be good options as partners for Australia in meeting its strategic and economic needs. Thus, Australia, Indonesia and India can make joint efforts to ensure peace in the region. &nbsp