Australia's Tightrope Walk: Balancing China & the U.S.

Mon Sep 28 2026 22:06:24 GMT+0000 (Coordinated Universal Time)

Australia juggles trade, defense and diplomacy as China‑US rivalry heats up.

Australia trades a lot of its key goods to China while tightening its military ties with the U.S. Military drills such as Southern Jackaroo boost readiness, but only a third of Australians trust the U.S. to act responsibly. At the same time, China remains the country’s biggest export market. With rising tensions, Australian leaders face a balancing act between security and economics, trying to keep the nation's interests in both spheres.

Australia’s tightrope walk

Learning how to keep the lights on while walking between two superpowers.

Trade: China buys about 25% of Aussie exports, but the relationship hit a snag after Australia raised Covid‑19 questions in 2020.
Defense: Joint Southern Jackaroo drills with the U.S. and Japan sharpen readiness, while the U.K. and Australia partner on nuclear submarines.
Public trust: Only 31% of Australians say they trust the U.S. to act responsibly.
Balance: Debate lingers over whether to prioritize economic ties or security commitments.

Brigadier Ben McLennan says Australia is “rehearsing for the worst type of war,” while politicians keep the conversation tense. Ultimately, Australia realizes it can’t pick sides—it must play a balancing act that keeps both nations interested and engaged.