For Australia, China's foreign policy, particularly in the Asian region, is of critical importance. To respond effectively to China's activities in a way that protects Australia's interests, we need to know not only what China is doing, but why. There appears to be a contradiction in Chinese foreign policy that Xi Jinping is prioritising good relations with countries on the periphery, however at the same time, insists China will not compromise on any issue pertaining to its territorial sovereignty. How can this apparent tension be resolved, particularly when China blames tensions around its periphery on the U.S. Rebalance to Asia, not on its own policies. The U.S. says China is intimidating its neighbours and not abiding by international law. Who is right?

On 21 May, John Garnaut and Bonnie Glaser discussed China's regional policy with Lowy Institute East Asia Program Director Merriden Varrall.