China
Minilateral solutions to the geoeconomic challenges facing Japan and Australia
Abstract
Japan and Australia, as major middle powers in the Indo-Pacific region, are interested in using minilateralism to enhance regional cooperation in the economic-security nexus and prevent coercive economic practices by countries like China. They aim to diversify trade relationships and strengthen rules-based economic order through initiatives such as CPTPP and RCEP. However, direct retaliation is not feasible, so proactive measures to increase regional resilience are necessary. While bilateral partnerships are important, they may not provide enough leverage against China, and multilateral arrangements can be slow and easily disrupted by competition. Minilateral initiatives offer a more flexible and effective way to address these challenges.
In the Indo-Pacific region, Japan and Australia are key players in promoting minilateralism as a means to enhance regional cooperation. Both countries are focusing on the nexus between economics and security, using economic tools like trade and investment to pursue security-related goals. Japan and Australia are particularly interested in preventing coercive economic practices from major powers, such as China, that could disrupt the regional economic order.
Both Japan and Australia have experienced coercive economic actions from China in the past, prompting the need for alternative strategies to protect themselves and the region. A proactive approach involves building resilience in the region, diversifying trade relationships, and strengthening the rules-based economic order. Both countries have been actively engaging with the region through bilateral partnerships and participation in multilateral institutions like the CPTPP, RCEP, and IPEF.
While bilateral partnerships have their limitations, and multilateral arrangements can be slow-moving, minilateral initiatives offer a more agile and focused approach to addressing challenges in the region. Japan and Australia’s common interest in enhancing regional cooperation through minilateralism reflects their commitment to promoting a stable and prosperous Indo-Pacific region.
