Australia's Relationship with China During the Howard
Total Page：16
File Type：pdf, Size：1020Kb
The Man of Steel and The Dragon: Australia’s relationship with China during the Howard Era STJEPAN T. BOSNJAK Thesis submitted in fulfilment of the requirements for the degree of Master of Arts (Research) College of Arts Victoria University 2017 Abstract 1996 was the worst year in the Australian-Chinese bilateral relationship since the Whitlam recognition. Yet in October 2003, Chinese President Hu Jintao became the first non-American head of state to address a joint sitting of Parliament, a deeply symbolic honour. This thesis examines how the Howard Government managed to go from the lows on 1996 to the highs of 2003, using it as a case study for Neoclassical Realism (NCR). NCR shares the same characteristics with other theories of Realism, however it argues that those theories on their own cannot fully explain events. NCR combines the statesman centric role of Classical Realism with the systemic pressures of Neorealism, and contends that both internal domestic and external international factors contribute to a state’s pursuit of its interpretation of its national interests. There are many internal variables that Neoclassical Realists argue impact on a state’s decision making, including resource extraction and domestic interests groups. This thesis focuses on political leadership and contends that John Howard played a central role in improving the relationship. To analyse Howard’s decisions we must examine the political context within which he operated in. Australia’s domestic institutions (including Parliament, political parties, bureaucracies, business and societal elites, the electorate) and its political culture (including Australia’s historical fear of ‘being swamped by Asians’, of bandwagoning with greater powers, and Howard’s own rise to power) shaped and restrained Howard’s responses to changes to the international structure. Knowing how the Howard Government managed to repair relations after such a disastrous start will help provide a useful blueprint for future governments with regards to how to manage similar situations. By analysing Australia’s relationship with China during the Howard era, we can learn from the mistakes and replicate the successes. This thesis concludes with an assessment of Australia’s relationship with China at the end of the Howard Era, noting that it became Australia’s biggest trading partner. i Student Declaration I, Stjepan T. Bosnjak, declare that the Master by Research thesis entitled The Man of Steel and The Dragon: Australia’s relationship with China during the Howard Era is no more than 60,000 words in length including quotes and exclusive of tables, figures, appendices, bibliography, references and footnotes. This thesis contains no material that has been submitted previously, in whole or in part, for the award of any other academic degree or diploma. Except where otherwise indicated, this thesis is my own work. Signature Date: 31 Aug. 2017 ii Preface My intellectual interest in the Sino-Australian relationship was first sparked in 2012, after a reading of Michael Sainsbury’s ‘Chinese burn at fumbles’ in The Australian 1, which highlighted the ALP’s consistent failure to successfully engage China, while at the same time discussing China’s key role in ensuring Australia’s recent economic success. The article was published soon after the Gillard Government and the Obama Administration had taken the step in 2011 of deploying 2,500 US Marines in Darwin, allegedly as a symbolic measure to counter Chinese influence. Following that article, I initially planned to examine the history of Australia’s relations with both China and the United States and how the relationships might continue in the 21st Century. Following my first meetings with my supervisors, it became clear that a predictive approach was problematic in a number of ways, and it is now even clearer, at the beginning of the Trump US presidency, that any attempt at political forecasting is generally on shaky ground; examining Australia’s relationship with China during the Howard years, however, allows me to continue to improve my understanding of how those relationships have tended to develop. There are several other reasons as to why I have chosen this topic. There is the practicality of the ‘bookends’ of having a logical starting and ending point. The Howard Government was in power for such a long time that there is ample material to cover, and also that it was in power until only very recently, so its policies are still having an impact on current Australia-China relations. Howard was, and still is a very divisive figure in Australian society. I believe that the 21st Century will be ‘the Asian Century’ because of the ‘peaceful rise’ of China. How Australia handles its relations with China will dictate the way Australia manages its own place in the world in the 21st Century. The year I started this thesis, 2012 was also the 40th anniversary of the establishment of relations between Australia and the People’s Republic. Neoclassical Realism is relatively new and untested compared to other theories of international relations. It combines elements of two different schools of Realism - 1 Michael Sainsbury, ‘Chinese Burn at Fumbles’, The Australian, 5 Apr. 2012, http://www.theaustralian.com.au/news/features/chinese-burn-at-fumbles/story-e6frg6z6-1226319043456 (accessed 23 April 2012) iii Neorealism and Classical Realism, and my supervisors and I agreed it provided the relevant theoretical underpinning necessary. I would like to thank my two supervisors Mark and Ed, who have been there from start to finish, full of ideas, helpful hints and good humour when I’ve needed ‘the pick me up’. They suggested I consider both Howard and Neoclassical Realism. Their advice has been invaluable for a budding young novice academic, finding his way in the world of international relations. I genuinely consider them friends. I have an equal debt of gratitude to all of my family and friends who have put up with late nights, requests for feedback and tolerating my moodiness. Kim, my wife, is a textbook example of what soft power can accomplish that hard power cannot. Most Australians have a more intimate knowledge of what is happing in New York, Washington or London, than they do in Hong Kong, Beijing or Shanghai. Despite the 21st Century being the Asian Century, we are very illiterate when it comes to understanding Asia in general, and China in particular. Even among the educated intelligentsia, any discussion is coloured by preconceived judgements of politics and culture, rather than seeking to ascertain how the underlying characteristics of Chinese history and culture shapes its present. Due to the west’s values, concepts and institutions dominating the international landscape over the last two decades it has “never been required to address and understand the conceptual framework of a non-Western culture.”2 My aim is that this thesis will contribute to this discussion by creating interest in the relationship Australia has developed with China. Down the rabbit hole I went. 2 Martin Jacques, When China Rules the World: The End of the Western World and the Birth of a New Global Order, Second Edition, Penguin, London, 2009, p288 iv Table of Contents Page Number Abstract I Student Declaration II Preface III Table of Contents V List of Tables, Figures and Illustrations VI Notes on spelling, grammar, style and format VII List of Abbreviations X Introduction 1 Chapter I: Neoclassical Realism and Australian Foreign Policy 10 Chapter II: Howard, China, and Trough of 1996 50 Chapter III: Howard, China, and the Path to 2003 75 Conclusion 113 References 122 Appendices: Appendix 1: Formalised dialogues between Australia and China 151 Appendix 2: Military exchange and joint exercises between Australia and China (excluding Hong Kong) 152 Appendix 3: Howard Government revenue and expenses 153 Appendix 4: Howard Government achievements 153 Appendix 5: Sino-Australian Bilateral investment 154 v List of Tables, Figures and Illustrations Page 1. China as a Security Threat to Australia 47 2. Appendix 1: Formalised dialogues between Australia and China 151 3. Appendix 2: Military exchange and joint exercises between Australia and China (excluding Hong Kong) 152 4. Appendix 3: Howard Government revenue and expenses 153 5. Appendix 4: Howard Government achievements 153 6. Appendix 5: Sino-Australian Bilateral investment 154 vi Notes on spelling, grammar, style and format I have used the title ‘The Man of Steel and the Dragon’, to highlight not only Howard’s nickname bestowed on him by Bush in recognition of his staunchness, but to also reflect the importance of steel in Australia’s relationship with China during his period of incumbency. In addition, the Dragon is a mythical creature in Chinese culture and an historical archetype of imperial power. It has entered western consciousness as a symbol of China. A vast amount of material was used in the research for this thesis, and I noticed many inconsistencies in regards to spelling and grammar. The spelling differences are mainly due to whether the author of a particular piece is British, American, Australian or having English as a second (or even third) language. Unless using a particular word in a quote, or as part of a title or institution (e.g. the American spelling of ‘Defence’ is with ‘s’ replacing the ‘c’) all words are spelt in the ‘Australian’ way. All words contained within “” are quotes. Many texts are inconsistent in their use of proper nouns in the context of deferential capitalisation. Some use lower case letters when using terms such as ‘Prime Minister’ or ‘Communism’. There are other ‘isms’ that fluctuate as either capital letters or lower case, and not all are consistent, for example ‘Realism’, Neorealism and Classical Realism are spelled with lower case letters in many texts. Unless using a direct quote, or resource title, I will be using proper nouns where appropriate and will use lower case when referring to the positions/titles in a general way (prime ministers) and upper case when a specific person occupies a position (Prime Minister John Howard).