If you’re happy with it, Canberra will sell Australia to China

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From The Greens via Domainfax:

The Greens have ramped up their rhetoric against the alliance with the United States in the wake of Donald Trump’s victory, suggesting the strategic arrangement has become a “security threat to Australia”.

Party leader Richard Di Natale says that President-elect Trump’s high-profile views on domestic and international affairs represent “an ally’s worst nightmare” and highlight a need for Australia to redefine the relationship with the US and operate more independently.

The Greens leader has left nothing to the imagination in his opinion of Donald Trump and has some advice for the PM when it comes to the Australia-US alliance.

“In light of the threats presented by Trump’s election, the Greens are intensifying our calls to undertake a fundamental reassessment of the alliance. This is something we have been talking about for a long time,” Senator Di Natale said in a speech to the Australian Institute of International Affairs national conference.

The Greens leader said Mr Trump’s views on climate change, refugees, defence spending, nuclear proliferation, trade and authoritarian governments make his country a “dangerous ally”.

“We need to recognise that the alliance has served us well; it’s served us poorly at times, but there are grave concerns now that the alliance with the US represents a security threat to Australia,” he said in response to a question about the secretive joint military facility at Pine Gap.

OK then, what will it mean. This, from Peter Hartcher:

…The Obama administration, after years painstakingly negotiating the deal, yielded to the reality that the American people have come to regard free trade as their enemy.

Obama reluctantly gave up his effort to have the TPP ratified by the US Congress in his final days in power.

Instead, China took over the task of writing the rules, just as Obama had foreseen.

“Openness is vital for the prosperity of the Asia-Pacific,” China’s President Xi Jinping declared at the annual summit of the Asia-Pacific Economic Co-operation group, meeting in Lima.

“China will not shut the door to the outside world but will open it even wider.”

…”This is playing out in real time,” said the US Trade Representative Mike Froman, explaining the realpolitik to reporters outside the APEC summit.

“We see people around the table here that are now saying that if the TPP doesn’t move forward they are going to have to put their eggs in an RCEP basket,” referring to the China-sponsored Regional Comprehensive Economic Partnership.

The TPP does not include China. RCEP does not include the US.

Australia, intelligently maximising its options, is a member of both. RCEP also includes the 10 countries of Asean plus India, Japan, South Korea, NZ and China.

…America is relinquishing leadership. But what sort of road rules will China write? A rules-based system for the good of all, or a selfishly chaotic zone of clashing interests?

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There is no walking away from ANZUS without walking straight into the arms of a waiting China. Conversely, there is no walking towards China without giving up on ANZUS in all but name.

So, if you’re concerned about climate change, refugees, defense spending, nuclear proliferation, trade and authoritarian governments then you had better think long and hard about whether or not you think that China’s rising dictator, Xi Jinping, is on your team.

About the author
David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.