China and the Australia-New Zealand alliance: the importance of loyal opposition

Abstract

ABSTRACT The Australia-New Zealand alliance is a critical element of New Zealand foreign and defence policy. It is especially important in a region that is becoming less stable and more competitive. This commentary asks how the alliance influences New Zealand’s China policy. Australia and New Zealand both enjoy significant trade relations with China, and both have sought to manage relations to maximise economic opportunities. Following decades of economic growth, China has led a regionwide increase in defence spending, becoming a more powerful, consequential and at times disruptive regional actor. This shift has complicated China policy in both countries and further underlined the importance of the alliance partnership for New Zealand. Both countries have recalibrated their China policies and strengthened the cohesion of the alliance. This is shown by shared assessments of opportunity and risk, of synchronised shifts due to changes in China and joint actions to shape China’s behaviour and the regional order. Temporal differences in policy shifts, notably in security settings and public diplomacy, follow a tradition of loyal opposition that ultimately strengthens the alliance response to a rejuvenated China.