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Begin New Search Content Type Commentary and Analysis Publishing Institution Lowy Institute for International Policy

1. The Ukraine effect: demise or rebirth of the global order?

Author:
Bobo Lo
Publication Date:
05-2023
Content Type:
Commentary and Analysis
Institution:
Lowy Institute for International Policy
Abstract:
The Russian invasion of Ukraine has sharpened the commitment of Western governments to a liberal vision of international order. But it is a different story elsewhere. Many countries, particularly in the Global South, regard the rules-based order as an artificial Western construct, and the Ukraine war as a matter of geopolitics rather than norms and principles. Events in Ukraine have reinforced Washington’s views about two competing visions of global order — one democratic, the other autocratic. However, such binarism has little resonance beyond the West. For the Global South, the divide that matters is with the Global North. This is not only about relative influence and status in the international system, but also diverging priorities. A rules-based international order is achievable, but not as commonly imagined in the West. The post-Cold War template of unalloyed US global leadership and Western-dominated institutions is no longer tenable. The only viable order is one that is more inclusive and representative, reflecting a world where power is increasingly diffuse, and global cooperation is critical in meeting threats such as climate change and human insecurity.
Topic:
Multilateralism, International Order, and Russia-Ukraine War
Political Geography:
Russia and Ukraine

2. Chips, subsidies, security, and great power competition

Author:
John Edwards
Publication Date:
05-2023
Content Type:
Commentary and Analysis
Institution:
Lowy Institute for International Policy
Abstract:
Government subsidies to industry in leading economies are large and growing, with potentially deep, wide-ranging, and unpredictable consequences for the world. It is not clear what rules, if any, will apply in this new era of industry competition, nor whether the measures will be effective in denying frontier technology to rival economies. The impacts of industry subsidies and export controls, including for countries such as Australia, hang on their implementation — beneficial in so far as they speed tech innovation, but detrimental if they split the global economy into competing blocs.
Topic:
Security, Economy, Subsidies, Competition, and Microchips
Political Geography:
Australia and Global Focus

3. Southeast Asia Aid Map - Key Findings Report

Author:
Alexandre Dayant, Grace Stanhope, and Roland Rajah
Publication Date:
06-2023
Content Type:
Commentary and Analysis
Institution:
Lowy Institute for International Policy
Abstract:
Official development finance plays an important role in financing Southeast Asia’s development, equivalent to around 10% of total government development spending in the region. China is Southeast Asia’s single largest development partner and leads infrastructure financing. Yet, implementation problems have seen the scale of China’s financing decline in recent years. Traditional development partners collectively still dominate development financing in Southeast Asia at 80% of the total. The multilateral development banks lead the way, followed by Japan, Europe, and South Korea. The United States and Australia are mid-sized players. India and the Middle East have become notable sources of non-traditional development finance, with the Islamic Development Bank playing an important role. Climate development finance is increasing, but Southeast Asia will need more support if it is to transition towards resilient, low-carbon development. Intraregional development cooperation is growing, but only makes up a small part of development finance in Southeast Asia.
Topic:
Climate Change, Development, Humanitarian Aid, Finance, and Economy
Political Geography:
Asia and Southeast Asia

4. How to make Indonesia’s sovereign wealth fund work

Author:
Kyunghun Kim
Publication Date:
07-2022
Content Type:
Commentary and Analysis
Institution:
Lowy Institute for International Policy
Abstract:
The Indonesian government has established a sovereign wealth fund: the Indonesia Investment Authority (INA). Unlike many other sovereign wealth funds that manage large national savings, INA seeks to attract foreign co-investors to help fund economic development. INA’s near-term role is to purchase assets from heavily-indebted infrastructure-related state enterprises to improve their financial health and allow them to carry out further development projects. INA’s corporate governance arrangements are reasonable on paper. Much will depend on implementation. INA has attracted interest from a variety of international financiers, including state-backed investors from the United States, Japan, United Arab Emirates, and China. Clarifying INA’s investment goals and strengthening external monitoring mechanisms could help attract greater interest.
Topic:
Sovereign Wealth Funds, Economy, Investment, and Corporate Governance
Political Geography:
Indonesia and Southeast Asia

5. Turning point? Putin, Xi, and the Russian invasion of Ukraine

Author:
Bobo Lo
Publication Date:
05-2022
Content Type:
Commentary and Analysis
Institution:
Lowy Institute for International Policy
Abstract:
Putin’s war in Ukraine has highlighted the resilience but also the limitations of Sino–Russian partnership. Far from being an “arc of autocracy”, this is an interests-based relationship between strategically autonomous powers. Foreign policy coordination between China and Russia is limited by their different views of global order. Beijing is invested in a stable international system, albeit one skewed in its favour, whereas Moscow thrives on disorder and uncertainty. Xi Jinping aims to preserve the Sino–Russian partnership while maintaining ties with the West. But Beijing’s balancing act will become harder to sustain as the war continues. The balance of power within the bilateral relationship has tilted sharply towards Beijing. Russia is more reliant on China than ever. The long-term outlook for the relationship is unpromising.
Topic:
Foreign Policy, Bilateral Relations, Partnerships, Conflict, and Vladimir Putin
Political Geography:
Russia, China, and Ukraine

6. Revising down the rise of China

Author:
Roland Rajah and Alyssa Leng
Publication Date:
03-2022
Content Type:
Commentary and Analysis
Institution:
Lowy Institute for International Policy
Abstract:
China will likely experience a substantial long-term growth slowdown owing to demographic decline, the limits of capital-intensive growth, and a gradual deceleration in productivity growth. Even with continued broad policy success, our baseline projections suggest annual economic growth will slow to about 3% by 2030 and 2% by 2040, while averaging 2–3% overall from now until 2050. China would still become the world’s largest economy, but it would never enjoy a meaningful lead over the US and would remain far less prosperous and productive per person even by mid-century.
Topic:
Demographics, Economy, Economic Growth, and Strategic Competition
Political Geography:
China, Asia, and United States of America

7. Drug trafficking in the Pacific Islands: The impact of transnational crime

Author:
Jose Sousa-Santos
Publication Date:
02-2022
Content Type:
Commentary and Analysis
Institution:
Lowy Institute for International Policy
Abstract:
The Pacific “drug highway” has spilled over into domestic markets for illicit drug consumption and production in the Pacific Islands region. Drug trafficking has evolved significantly with the rise of local actors in transnational criminal networks. Capacity shortfalls and a disconnect between regional law enforcement infrastructure and national law enforcement agencies undermine trust and are detrimental to intelligence sharing and interoperability in cross-border policing efforts. The deportation policies of Australia, New Zealand, and the United States are exacerbating crime and addiction within Pacific nations. They undermine the policy objectives of development partners in the region and will need urgent review.
Topic:
Crime, Non State Actors, Law Enforcement, Transnational Actors, and Drug Trafficking
Political Geography:
Australia, New Zealand, Asia-Pacific, and United States of America

8. Big data and national security: A guide for Australian policymakers

Author:
Miah Hammond-Errey
Publication Date:
02-2022
Content Type:
Commentary and Analysis
Institution:
Lowy Institute for International Policy
Abstract:
Data abundance, digital connectivity, and ubiquitous technology now enable near complete coverage of human lives across the planet, often in real-time. The Covid-19 pandemic, by forcing more interactions online and greater social reliance on technology, has significantly added to the global pool of data. Advances in the scale, application, and commercial uses of data significantly outpace regulation of the big data landscape. Technical and analytical capabilities that are essential for the functioning of societies are increasingly concentrated in the hands of a small number of commercial entities. The implications of big data for surveillance, real or potential interference, and kinetic war are underappreciated in policy and public discussions. Identifying and protecting the uses of critical data should be a national security priority for government on par with safeguarding critical digital infrastructure.
Topic:
Government, National Security, Science and Technology, Surveillance, and Data
Political Geography:
Global Focus

9. WeChat’s role in Australian democracy: A grassroots view

Author:
Xueyin Zha
Publication Date:
08-2022
Content Type:
Commentary and Analysis
Institution:
Lowy Institute for International Policy
Abstract:
The social media messaging app WeChat is often portrayed in expert and media commentary as being inherently incompatible with democracy in Australia because the platform is subject to the scrutiny and censure of China, an authoritarian one-party state. This study provides the first in-depth snapshot of how politicians and everyday Chinese-Australians use WeChat at the grassroots level during council elections. It finds that WeChat, in these circumstances, can be broadly compatible with liberal democracy and significantly enhances democratic participation in a multicultural society. Using the December 2021 New South Wales (NSW) local elections as a case study, this paper analyses qualitative data collected from private group chats, interviews with Chinese-Australian politicians, and editors from media outlets on WeChat. The study finds that, overall, the app expanded, rather than restricted, Chinese-Australian voters’ access to quality news content to better inform their choices at the ballot box. The platform was used to bridge gaps in the provision of public services and information to Chinese-Australian communities and facilitated their civic engagement. Despite its benefits, WeChat is afflicted by issues relating to censorship, transparency, online polarisation, and mis- and disinformation. Australia’s stark political differences and fraught bilateral relations with China add additional layers of complexity to managing these challenges. However, improved oversight and governance arrangements, alongside enhanced funding for reliable Chinese-language online media, would help offset the risk of foreign influence and better harness the platform’s utility for bolstering the participation of Chinese-Australian communities in Australia’s democracy.
Topic:
Democracy, Social Media, Political Participation, and WeChat
Political Geography:
China and Australia

10. Australia in the Middle East: Enduring risks, interests, and opportunities

Author:
Rodger Shanahan
Publication Date:
08-2022
Content Type:
Commentary and Analysis
Institution:
Lowy Institute for International Policy
Abstract:
As Australia refocuses its foreign and defence policies on its near abroad, it must be careful not to allow ties with the Middle East to fall into neglect. This analysis examines the impact that two decades of security engagement in the Middle East have had on Australia’s relations with the region and argues that while Canberra may have largely ended the country’s military commitments in the Middle East, the region is more important in more ways to Australia than it was before that commitment got underway. An expanded Australian diplomatic footprint, growing economic ties, and more extensive people-to-people links with the Middle East means that the region and its security risks have greater domestic relevance for Australia than they did two decades ago.
Topic:
Foreign Policy, Migration, Conflict, and Strategic Interests
Political Geography:
Middle East and Australia

11. Chinese coercion, Australian resilience

Author:
Richard McGregor
Publication Date:
10-2022
Content Type:
Commentary and Analysis
Institution:
Lowy Institute for International Policy
Abstract:
Australians have grown in confidence about the country’s ability to withstand economic coercion from China since the imposition of punitive trade measures in 2020. Beijing suspended high-level political exchanges and imposed a range of informal sanctions and trade blockages against Australia in the wake of a series of escalating disputes, culminating in Canberra’s call for an independent inquiry into the origins of Covid-19 in April that year. Two years on, it is prudent to plan on the basis that it is still early days in China’s use of trade measure against Australia. Canberra and Beijing resumed ministerial-level dialogue after the election of the Albanese Labor government in May 2022. But given the long-term structural divide between the United States and China, and Australia’s position as a strong US ally, Australian governments of all persuasions should assume that China’s trade policies against Australia will remain largely in place. Beijing may tactically retreat now and again to fill shortfalls or if it wants for political reasons to present itself as a conciliatory partner. But a solution to the fundamental bilateral political tensions driving trade disruptions is not on the horizon. The sectors in which bilateral trade with China have continued to prosper are not those in which Australian producers are dependent on China but rather where the two countries are interdependent. Australia cannot find alternative markets to match China for commodities such as iron ore, liquefied natural gas, and wool. Nor can China wean itself off a substantial reliance on Australia as a supplier. For this reason, the core elements of bilateral trade will remain reasonably resilient for some years. However, absent a huge change in the structure of the Australian economy and its export profile, the longer-term picture for exports to China looks worse. As China’s economy grows and its structure changes and becomes less resource intensive, Australia will likely get a decreasing share of a growing pie. Over time, the cost of trade bans and other punitive measures will likely mount as Chinese investment in Australia diminishes and the cost of diversifying from the region’s largest economy grows. Australia has maintained its reputation as a reliable supplier of commodities throughout the downturn in bilateral relations with China. It is imperative that it continue to do so — both to benefit the Australian economy and to maintain leverage of its own. Control over critical commodities carries considerable strategic value, as the role of gas and oil in the Ukraine war has shown.
Topic:
Foreign Policy, Bilateral Relations, Commodities, Trade, Resilience, and Coercion
Political Geography:
China and Australia

12. Sharper choices: How Australia can make better national security decisions

Author:
Ben Scott
Publication Date:
12-2022
Content Type:
Commentary and Analysis
Institution:
Lowy Institute for International Policy
Abstract:
As Australia’s national security environment has grown more complex and competitive, the country’s governments have gradually articulated their strategic response, primarily in the 2016 Defence White Paper, the 2017 Foreign Policy White Paper, and the 2020 Defence Strategic Update. In these documents, and in major speeches, Australian governments have adopted four broad strategic concepts: the embattled rules-based order, the return of great power competition, the expansion of grey zone competition, and the increased likelihood of major power war. There is no master theory that can entirely explain Australia’s situation and guide its decision-makers. A national security strategy is necessary, but its utility will be limited by the increasingly unpredictable course of geopolitics. The strategic concepts Australia has adopted illuminate its interests, objectives, and the types of issues Canberra must grapple with. But these concepts also mask many of the difficult choices Australia will face. Focusing on the paradox of “competitive independence” brings additional clarity to the country’s policy dilemmas but does not resolve them. Responding to greater uncertainty will require greater case-by-case decision-making. But this does not mean the government should simply muddle through. Rather, it should seek to improve the quality of its decision-making by following through on Australia’s history of imposing more structure on national security decision-making. Acknowledging the complexity of the challenges it faces, the government should more often seek discrete assessments of national security problems to ensure that all relevant dimensions are considered. This would help ensure that Australia’s long-term strategic goals are considered when critical decisions are made.
Topic:
Foreign Policy, National Security, and Decision-Making
Political Geography:
China and Australia

13. Mixed report card: China’s influence at the United Nations

Author:
Courtney J. Fung and Shing-hon Lam
Publication Date:
12-2022
Content Type:
Commentary and Analysis
Institution:
Lowy Institute for International Policy
Abstract:
China is of growing importance to the United Nations. Beijing aims to exert influence at the world body to legitimise and disseminate its foreign policy values and interests. This report contextualises China’s growing presence at the United Nations by examining publicly available data on four metrics that gauge Beijing’s success in steering the global governance agenda. Those metrics are: funding for UN departments, programs, and initiatives; staffing of executive-level personnel positions; voting in the UN General Assembly and UN Security Council; and the use of PRC-specific discourse and language in UN-generated documentation. The United Nations has become progressively more reliant on China’s general contributions, and in turn China has used a combination of levers to elevate its position within the UN system. However, this report finds that China is still selective in its overall approach to UN participation and that efforts by the PRC do not necessarily translate into successful influence at the body. The report makes three recommendations for UN stakeholders. First, a deeper understanding must be gained of what China contributes across different UN agencies and functional areas to establish a more complete picture of its multilateral input. Second, efforts should be made to shape China’s engagement in multilateral issues, in particular those that the PRC is yet to prioritise, such as refugee management. Third, it is vital to articulate an inclusive multilateral vision for a rules-based international order that specifies under which conditions China’s contributions are embraced, rather than framing PRC input solely as a source of concern.
Topic:
Foreign Policy, Diplomacy, United Nations, Governance, and UN Security Council
Political Geography:
China and Asia

14. The internet of things: China’s rise and Australia’s choices

Author:
John Lee
Publication Date:
12-2021
Content Type:
Commentary and Analysis
Institution:
Lowy Institute for International Policy
Abstract:
The Internet of Things (IoT) is connecting a growing range of economic and social activity across national borders, while simultaneously expanding the security challenges implied by these connections, including to Chinese state power. Despite US-led efforts to exclude Chinese actors from digital networks worldwide, the economies of East and Southeast Asia are becoming more densely integrated with China through evolving IoT ecosystems and supply chains. These trends threaten to disadvantage Australia and require policies to build up the country’s own technological capacities while devising innovative ways to manage, rather than avoid, the risks entailed in growing digital connections with China.
Topic:
Security, Economics, Science and Technology, Internet of Things, and Supply Chains
Political Geography:
China, Asia, Australia, and United States of America

15. Lines blurred: Chinese community organisations in Australia

Author:
Jennifer Hsu, Richard McGregor, and Natasha Kassam
Publication Date:
11-2021
Content Type:
Commentary and Analysis
Institution:
Lowy Institute for International Policy
Abstract:
Australia’s foreign interference debate and the souring of bilateral relations between China and Australia has left many Chinese-Australians and their community organisations caught in a contest for their loyalty. The Chinese Party-state actively reaches out to overseas Chinese communities, in Australia and elsewhere, to promote China’s political interests and economic development, with mixed results. Australia’s efforts to combat this outreach have also had mixed results. A survey of Chinese-Australians found that many believed the new anti-foreign interference laws helped to protect community members from Beijing’s overtures. However, a greater number said attacks on the community in Australia — political, verbal, and sometimes physical — had alienated Chinese-Australians and in some cases made them more receptive to messages critical of Australia. Many Chinese-Australians said they had little or no engagement with Chinese community organisations. The newer organisations in particular, which often have closer economic ties to China, were not considered to be representative of broader community sentiment. The area in which community associations were reported to have the greatest traction was in promoting business opportunities in China.
Topic:
Bilateral Relations, Foreign Interference, and Community Organizing
Political Geography:
China, Asia, and Australia

16. China, climate politics and COP26

Author:
Sam Geall
Publication Date:
10-2021
Content Type:
Commentary and Analysis
Institution:
Lowy Institute for International Policy
Abstract:
There is no credible emissions pathway towards limiting global warming to 1.5°C without significant movements from China over the next decade to accelerate its energy transition and decarbonisation. China aims to become carbon-neutral by 2060. Yet Beijing is hedging in the near term, in part due to an uncertain global macro and geopolitical environment, and in part due to domestic threats of social instability and economic stagnation. China’s negotiating position at COP26 in Glasgow stands to benefit from support from many developing countries — unless the United States and other rich countries make an effective alternative appeal to the Global South with respect to climate finance, mitigation and adaptation.
Topic:
Climate Change, Energy Policy, and Carbon Emissions
Political Geography:
China, Global Focus, and United States of America

17. Translating tension: Chinese-language media in Australia

Author:
Fan Yang
Publication Date:
09-2021
Content Type:
Commentary and Analysis
Institution:
Lowy Institute for International Policy
Abstract:
Chinese-language media outlets in Australia are more likely to support Australian government policy than Chinese government policy when reporting on tensions in the Australia–China relationship, but editorialise to soften or remove criticism of China and the Chinese government. This is, in part, because Chinese-language media outlets in Australia produce little original content, and instead translate and reproduce the majority of their content from Australian, rather than Chinese, news sources. Chinese-language media professionals say they prefer to re-publish Australian content because this helps Chinese migrants integrate into society. However, self-censorship is embedded in these media organisations’ editorial processes. This is particularly the case for Chinese-language media outlets whose content is distributed to mainland China via WeChat, news apps, and websites. Outlets self-censor out of concerns for a loss of market share and reprisals from Beijing.
Topic:
Diaspora, Media, News Analysis, and Translation
Political Geography:
China, Australia, and Asia-Pacific

18. Australia and the growing reach of China’s military

Author:
Thomas Shugart
Publication Date:
08-2021
Content Type:
Commentary and Analysis
Institution:
Lowy Institute for International Policy
Abstract:
China’s recent military development constitutes the greatest expansion of maritime and aerospace power in generations and is most obviously seen in its expanding long-range missile force, bomber force, and modernising blue-water navy. While Australia’s defence interests and territorial integrity are largely unthreatened for now, a future Indo-Pacific dominated by China would present a grave possibility of military coercion by the Chinese People’s Liberation Army. The prospect of Chinese military action against Australia remains remote. But China has the military and industrial potential to field a long-range power projection capacity that would dwarf anything Japan threatened Australia with during the Second World War.
Topic:
Security, Foreign Policy, Armed Forces, Maritime, Military, and Aerospace
Political Geography:
China, Asia, and Australia

19. The Crisis after the Crisis: How Ladakh will Shape India’s Competition with China

Author:
Arzan Tarapore
Publication Date:
05-2021
Content Type:
Commentary and Analysis
Institution:
Lowy Institute for International Policy
Abstract:
The still-unresolved Ladakh crisis has created a new strategic reality for India, marked by renewed political hostility with China, and an increased militarisation of the Line of Actual Control. This new strategic reality imposes unequal costs on India and China. India is likely to defer much-needed military modernisation and maritime expansion into the Indian Ocean — which would impair its ability to compete strategically with China. In contrast, China incurred only marginal material costs; it was probably more concerned with the prospect of continued deterioration in its relationship with India. Even that cost was more threatened rather than realised, and largely reduced when the disengagement plan was agreed.
Topic:
Crisis Management, Strategic Competition, Militarization, and Disengagement
Political Geography:
China, South Asia, India, and Asia

20. Countering China’s Adventurism over Taiwan: A Third Way

Author:
Patrick Porter and Michael Mazarr
Publication Date:
05-2021
Content Type:
Commentary and Analysis
Institution:
Lowy Institute for International Policy
Abstract:
There is a growing bipartisan consensus in Washington on a tighter embrace of Taiwan, which may soon become a stronger implied US commitment to go to war in the event of a Chinese invasion. Taiwan matters to US security and the regional order, and the United States should continue to make clear that aggression is unacceptable. But those advocating a stronger US security commitment exaggerate the strategic consequences of a successful Chinese invasion. The stakes are not so high as to warrant an unqualified US pledge to go to war. American decision-makers, like their forebears confronting the seeming threat of communism in Indochina, may be trapping themselves into an unnecessarily stark conception of the consequences of a successful Chinese invasion of Taiwan. It would be irresponsible for the United States to leave itself no option in the event of Chinese aggression other than war. But nor should Washington abandon Taiwan. There is a prudent middle way: the United States should act as armourer, but not guarantor. It should help prepare Taiwan to defend itself, to raise costs against aggression, and develop means of punishing China with non-military tools.
Topic:
Conflict Prevention, Foreign Policy, Territorial Disputes, and Crisis Management
Political Geography:
China, Taiwan, Asia, and United States of America