NIDS Commentary No

NIDS Commentary No. 82 China-Australia relations and the “Sharp Power” Concept Global Security Division, Policy Studies Department Researcher Yusuke Ishihara No. 82 August 1, 2018 NIDS Commentary *This is a direct translation of an article in the intellectual community of Australia the originally written in Japanese. series of activities (deemed to be) by the alleged Chinese government have been Preface conceptualized as an example of “sharp In June 2018 the Parliament of Australia power”. “Sharp power” is a new notion that passed legislation intend to prevent and was put forth by Christopher Walker and crack down on unwarranted interference in Jessica Ludwig of the National Endowment domestic politics and society by foreign for Democracy and conceptually elucidated powers (hereinafter referred to as the by Joseph S. Nye Jr. of Harvard University. It Foreign Government Interference means the circumstances in which the Countermeasures Act). In the process of authoritarian countries of China and Russia enacting it, the cabinet ministers of the use the openness of democratic countries to conservative coalition government led by expand their own influence = power, and the Prime Minister Malcolm Turnbull and senior circumstances in which the former expand party members have suggested with unusual their power with respect to the latter based explicitness that one of the key objectives of on the “asymmetry” that exists between the bills was to strengthen countermeasures authoritarian countries and democratic against interference by China in Australian countries in their domestic systems and politics and society. Moreover, in parallel with values regarding freedom of speech and the the debate on the bill, discussions also press. began to be widely held in the Australian This paper investigates in detail the media and academic societies, sometimes in emergent discussions and the related a form substantially backed up by evidence phenomena about the interference activities and sometimes in a form with a lot of of China reported in recent years in Australia, speculation mixed in, about the situation in while critically examining the analytical which people and organizations under the usefulness possessed by the “sharp power” supposed influence of the Chinese concept. In what follows, it analyzes two government are engaging in a variety of specific examples for these purposes, (1) political activities inside Australia. trends in recent years in the Australian Against the background of these kinds of domestic political circle and (2) discussions perceptions of the problem, in recent years about the so-called China’s influence in 1 NIDS Commentary No. 82 higher education centered on universities, Times) claiming that activities to enhance the and identify the points of contention legitimate influence of the Chinese people in regarding the Sharp Power concept. Australian politics should be strengthened, etc., some media took it as he had publicly Controversy over China in the Australian admitted that he was engaged in a variety of political world activities under the influence of the Chinese The direct factor behind the enactment of government.) Moreover, at about the same the aforementioned Foreign Interference Act time it was revealed that Senator Dastyari in June 2018 was the so-called Chinese had some of the travel expenses necessary connections controversy surrounding for his own political activities provided by the opposition party Senator Sam Dastyari, who Top Education Institute, allegedly a was a senior member of the Australian Labor China-connected organization in Australia. Party (and resigned from Parliament in As these Chinese connections surrounding January 2018). The beginning of the affair Senator Dastyari became the subject of was the discovery in 2016 that Senator controversy, the question of whether China Dastyari had been invited twice in the past to was interfering in Australia’s domestic China by an organization with links to Mr. politics in a variety of ways emerged as a Huang Xiangmo [name in Chinese theme that widely came to the attention of characters: 黄向墨 ], a Chinese the general public. However, as of 2016 the businessperson and the President of the curtain had closed on the affair in the form of Australian Council for the Promotion of the resignation of Senator Dastyari from all Peaceful Reunification of China (ACPPRC). important posts in the Australian Labor Party, The accusation was that Dastyari had and discussions pertaining to this matter in neglected to report the fact that he had his Parliament and the media seemed to wind travel expenses covered by foreign figures. down for a time. Australian new media reported that the However, in the following year, 2017, ACPPRC to which Mr. Huang belongs is suspicions about the Chinese connections of under the direction of the United Front Work Senator Dastyari suddenly developed into Department of the Chinese Communist Party the focus of the political situation due to the (CCP) Central Committee and is involved in discovery of the following two scandals. The management and organization of the first was his controversial statement related Chinese community in Australia, and to the South China Sea. When it was critically pointed out the fact that Senator revealed that Senator Dastyari made a Dastyari received financial benefits from the statement regarding the South China Sea to person with a deep relationship with the the effect that it is “a matter for China and Chinese government. (Furthermore, due to Australia should not get involved” at a the fact that Mr. Huang himself submitted an gathering of Chinese ethnic supporters when opinion piece to the international/English he appeared on the podium together with the edition of Huánqiú Shíbào (the Global aforementioned Mr. Huang, there was 2 NIDS Commentary No. 82 growing criticism in the Parliament of came to surface in Australia’s political circle Australia that his foreign policy positions and media regarding Chinese state activities were twisted by his financial connections inside Australia. As the major media stepped with the Chinese. The official party line the up their reporting, it became apparent that Australian Labor Party on the South China actually not only former Member of Sea tensions, to which Senator Dastyari Parliament Dastyari but also both the ruling belonged, is that “freedom of navigation” is and opposition parties were widely receiving endangered by China’s activities such as funds in a variety of forms from, and had land reclamation, etc. in the South China personal relationships with, organizations Sea so it is asserting the policy that the and individuals reported to have links to the Australian military should implement its own Chinese government, including Mr. Huang. “freedom of navigation” operations. When it was discovered that the local Therefore, it was officially acknowledged that Western Australian branch of Liberal Party, the aforementioned statement by Senator headed by Julie Bishop, a leading politician Dastyari deviated from the party line. in the governing conservative coalition Subsequently, when the second scandal government who was serving as the foreign came to light, in which Senator Dastyari minister, was receiving sizable donations communicated a warning to Mr. Huang to the from Chinese-Australian businessperson Mr. effect that you should be careful because it Chau Chak Wing, the controversy of is possible that your phone is being tapped Chinese connections changed into a political by the government, criticism developed in issue that transcended the boundary the political circles and the media that he between the governing and opposition had divulged information regarding the parties. It was reported in the media that at intelligence activities of the government to a the time this matter came to light Mr. Chau foreign national while being in the position of was already an active subject of an being a Member of Parliament. These investigation by the United States Federal events gave rise to suspicions that a leading Bureau of Investigation (FBI) based on the Member of Parliament who had continuously suspicion that he had provided bribes to the received the provision of funds from President of the United Nations General organizations and people indicated to be Assembly, but subsequently the fact that he under the influence of the Chinese was actually the subject of an investigation government may have compromised his was virtually confirmed from statements of policy positions and activities.. Senator governing party Members of Parliament and Dastyari took responsibility for the series of Prime Minister Turnbull. Furthermore, it was political scandals and resigned as a Member revealed that Bill Shorten, the leader of the of Parliament in January 2018. Australian Labor Party, had also had contact Triggered by this Chinese connections with Mr. Huang multiple times, including controversy surrounding former Member of visiting his home and having dinner with him, Parliament Dastyari, a variety of issues in the same way as former Member of 3 NIDS Commentary No. 82 Parliament Dastyari. The fact that the dinner (example: receipt of sensitive information created an opportunity for political party from political parties has been made illegal), donations by the developer company Yuhu (3) coordination and cooperation between Group where Mr. Huang serves as an ministries and agencies facilitated by the executive has been discovered, so a Minister for Home Affairs and the situation

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