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Australia’s vision of leadership in the Indo-Pacific

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Australia's Foreign Minister Marise Payne speaks during a joint news conference with US Secretary of Defence Mark Esper, US Secretary of State Mike Pompeo and Australia's Defence Minister Linda Reynolds (unseen) in Sydney, Australia, 4 August 2019 (Photo: Reuters/Jonathan Ernst/Pool).

Author: Bradley Wood, ANU

The recent speech by Australian Foreign Minister Marise Payne was an implicit message to the United States — Australia and the Indo-Pacific region can no longer wait for its leadership. Australia has signalled to the region and the next US administration that it is prepared to lead by example while the United States gets its house in order.

At the heart of Payne’s address was a policy announcement about the importance of multilateralism and the role international institutions should play in global crises like COVID-19.

After an extensive audit of its engagement with key multilateral institutions, Australia has decided that multilateral institutions are the best way to ‘preserve peace and curb excessive use of power’. But Payne also acknowledged that ‘multilateral institutions are experiencing unprecedented strain from a new era of strategic competition’.

China has used its growing influence to divide members of regional institutions such as ASEAN, weakening collective leadership on important issues like the South China Sea. More broadly, China has brought its influence to bear on global institutions such as the World Health Organization (WHO) to cater more to its interests and limit the extent of the United States’ influence.

Payne’s speech was an explicit signal to China about an alternative vision for the region. It called out China on its disinformation campaigns aimed at undermining democracy in the region and Australia’s economy by warning Chinese students to reconsider Australia as an education destination.

But more importantly, the speech didn’t mention the United States.

This is a departure from the approach taken by Payne’s predecessor, Julie Bishop, whose 2017 landmark address on ‘Change and Uncertainty in the Indo-Pacific’ was aimed directly at the United States. Bishop’s speech was also an important message delivered at a critical time. Australia and the region were looking for a sign of leadership from the new Trump administration.

In that speech, Bishop made clear to the Trump administration that the region was in ‘a strategic holding pattern and waiting to see whether the United States and its security allies’ would continue to play a leading role in the region. Bishop called on the Trump administration to ‘play an even greater role as the indispensable strategic power in the Indo-Pacific’.

But it appears that after three years these calls have gone unanswered.

Since then, the Trump administration has chosen to shake down alliance partners in an effort to get them to contribute more to their security. And given that the ANZUS (Australia, New Zealand and the United States) alliance remains fundamental to Australia’s security, the last thing Australia wants to do is offend the temperamental Trump administration by calling it out again.

Australia has proposed an alternative vision of leadership for the Indo-Pacific that strives to protect the multilateral system in the absence of US leadership and in the face of China’s revisionist agenda. This vision looks like the last few decades of US leadership but emphasises, for the time being, collective leadership by small and middle powers as the gatekeepers of the rules-based order.

This type of leadership approach fits the appetite of Australia’s immediate region. It’s as if this leadership vision was lifted from the website of multilateral institutions such as ASEAN which has underpinned peace and prosperity in Southeast Asia and thus Australia for decades.

Australia has determined that the best way to promote and protect Australia’s interests is to preserve, and bring its influence to bear on, multilateral institutions which have always been an important diplomatic amplifier of Australia’s foreign policy.

This is not only diplomatic leadership but also strategic leadership. The 2020 Defence Strategic Update prioritises shaping the Indo-Pacific region as the primary objective of Australia’s defence policy. This places diplomacy and engagement at the forefront of Australia’s foreign and defence policies.

But it remains to be seen whether Australia yields the same influence it once had on the international stage without the United States. Australia and its like-minded small and middle power neighbours will have less resources to wield instruments of national power to navigate the post-COVID-19 world unscathed from great power competition.

While Australia has committed AU$575 billion (US$400 billion) over the next decade, including AU$270 billion (US$188 billion) in…

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Business

Gordonstoun Severs Connections with Business Led by Individual Accused of Espionage for China

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Gordonstoun school severed ties with Hampton Group over espionage allegations against chairman Yang Tengbo. He denies involvement and claims to be a victim of political tensions between the UK and China.


Allegations Lead to School’s Decision

Gordonstoun School in Moray has cut ties with Hampton Group International after serious allegations surfaced regarding its chairman, Yang Tengbo, who is accused of being a spy for the Chinese government. Known by the alias "H6," Mr. Tengbo was involved in a deal that aimed to establish five new schools in China affiliated with Gordonstoun. However, the recent allegations compelled the school to terminate their agreement.

Public Denial and Legal Action

In response to the spying claims, Mr. Tengbo publicly revealed his identity, asserting that he has committed no wrongdoing. A close associate of Prince Andrew and a former Gordonstoun student himself, Mr. Tengbo has strenuously denied the accusations, stating that he is a target of the escalating tensions between the UK and China. He has claimed that his mistreatment is politically motivated.

Immigration Challenges and Legal Responses

Yang Tengbo, also known as Chris Yang, has faced additional challenges regarding his immigration status in the UK. After losing an appeal against a ban enacted last year, he reiterated his innocence, condemning media speculation while emphasizing his commitment to clear his name. Gordonstoun, on its part, stated its inability to divulge further details due to legal constraints.

Source : Gordonstoun cuts ties with business chaired by man accused of spying for China

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Business

China Dismantles Prominent Uyghur Business Landmark in Xinjiang – Shia Waves

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The Chinese government demolished the Rebiya Kadeer Trade Center in Xinjiang, affecting Uyghur culture and commerce, prompting criticism from activists amid concerns over cultural erasure and human rights violations.


Demolition of a Cultural Landmark

The Chinese government recently demolished the Rebiya Kadeer Trade Center in Urumqi, Xinjiang, a vital hub for Uyghur culture and commerce, as reported by VOA. This center, once inhabited by more than 800 predominantly Uyghur-owned businesses, has been deserted since 2009. Authorities forcibly ordered local business owners to vacate the premises before proceeding with the demolition, which took place without any public notice.

Condemnation from Activists

Uyghur rights activists have condemned this demolition, perceiving it as part of China’s broader strategy to undermine Uyghur identity and heritage. The event has sparked heightened international concern regarding China’s policies in Xinjiang, which have been characterized by allegations of mass detentions and cultural suppression, prompting claims of crimes against humanity.

Rebiya Kadeer’s Response

Rebiya Kadeer, the center’s namesake and a notable Uyghur rights advocate, criticized the demolition as a deliberate attempt to erase her legacy. Kadeer, who has been living in exile in the U.S. since her release from imprisonment in 2005, continues to advocate for Uyghur rights. She has expressed that her family members have suffered persecution due to her activism, while the Chinese government has yet to comment on the legal ramifications of the demolition.

Source : China Demolishes Uyghur Business Landmark in Xinjiang – Shia Waves

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China

China Expands Nationwide Private Pension Scheme After Two-Year Pilot Program

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China’s private pension scheme, previously piloted in 36 cities, will roll out nationwide on December 15, 2024, enabling workers to open tax-deferred accounts. The initiative aims to enhance retirement savings, address aging population challenges, and stimulate financial sector growth.


After a two-year pilot program, China has officially expanded its private pension scheme nationwide. Starting December 15, 2024, workers covered by urban employee basic pension insurance or urban-rural resident basic pension insurance across the country can participate in this supplementary pension scheme. This nationwide rollout represents a significant milestone in China’s efforts to build a comprehensive pension system, addressing the challenges of a rapidly aging population.

On December 12, 2024, the Ministry of Human Resources and Social Security, together with four other departments including the Ministry of Finance, the State Taxation Administration, the Financial Regulatory Administration, and the China Securities Regulatory Commission, announced the nationwide implementation of China’s private pension scheme effective December 15, 2024. The initiative extends eligibility to all workers enrolled in urban employee basic pension insurance or urban-rural resident basic pension insurance.

A notable development is the expansion of tax incentives for private pensions, previously limited to pilot cities, to a national scale. Participants can now enjoy these benefits across China, with government agencies collaborating to ensure seamless implementation and to encourage broad participation through these enhanced incentives.

China first introduced its private pension scheme in November 2022 as a pilot program covering 36 cities and regions, including major hubs like Beijing, Shanghai, Guangzhou, Xi’an, and Chengdu. Under the program, individuals were allowed to open tax-deferred private pension accounts, contributing up to RMB 12,000 (approximately $1,654) annually to invest in a range of retirement products such as bank deposits, mutual funds, commercial pension insurance, and wealth management products.

Read more about China’s private pension pilot program launched two years ago: China Officially Launches New Private Pension Scheme – Who Can Take Part?

The nationwide implementation underscores the Chinese government’s commitment to addressing demographic challenges and promoting economic resilience. By providing tax advantages and expanding access, the scheme aims to incentivize long-term savings and foster greater participation in personal retirement planning.

The reform is expected to catalyze growth in China’s financial and insurance sectors while offering individuals a reliable mechanism to enhance their retirement security.


This article was first published by China Briefing , which is produced by Dezan Shira & Associates. The firm assists foreign investors throughout Asia from offices across the world, including in in ChinaHong KongVietnamSingapore, and India . Readers may write to info@dezshira.com for more support.

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