Mike Pezzullo recently said that “the likelihood of conflict in this decade has been about 10 per cent, which is meaningful enough to plan for and indeed to be concerned about”. If Pezzullo’s assessment is correct, that means there is a 90 per cent chance that conflict will not happen. What is Australia’s plan for that (likely) scenario? This episode is about that 90% world, where Australia’s relationship with China will still matter greatly, as Beijing’s behaviour influences many of our interests, not just geopolitics and national security.

How might Australia consider thinking about a cooperative agenda with the PRC? In the words of PM Albanese, his government’s approach is to “co-operate with China where we can, disagree where we must and engage in our national interest”. Where can we cooperate, especially given the deep freeze in political relations that the two countries are only now climbing out of? What does engagement in the national interest mean given the extent to which China can affect many things we care about?

Darren is joined in this conversation by Dr Paul Hubbard. Paul is trained as an economist, first joining the Australian Public Service in 2006, and was sent from there to the ANU as a Sir Roland Wilson PhD Scholar in 2014.  More recently, in his capacity as a National Government Fellow at the ANU, Paul led a small team to produce a report - "A Sustainable Economic Partnership for Australia and China" that was launched in May. The report proposes an agenda for how Canberra and Beijing can take their economic relationship forward, and the two discuss that in the context of the broader question of what it means to develop a cooperative agenda with China and how should we think about the constraints imposed by geopolitics on that work?

Note: the report reflects the views of the ANU research team, and Paul’s comments in this episode are in an unofficial capacity as an expert on the Chinese economy, and do not represent the views of the Australian Government or its agencies.

Australia in the World is written, hosted, and produced by Darren Lim, with research and editing this episode by Walter Colnaghi and theme music composed by Rory Stenning.

Relevant links

“A Sustainable Economic Partnership for Partnership for Australia and China”, East Asian Bureau of Economic Research, Crawford School of Public Policy, ANU, May 2024: https://eaber.org/wp-content/uploads/2024/05/A-Sustainable-Economic-Partnership-for-Australia-and-China.pdf

Partnership for Change: Australia–China Joint Economic Report, Report authored by East Asian Bureau of Economic Research and China Center for International Economic Exchanges, August 2016: https://press.anu.edu.au/publications/partnership-change#:~:text=The%2520Australia%E2%80%93China%2520Joint%2520Economic,in%2520both%2520Australia%2520and%2520China.

2017 Foreign Policy White Paper: https://www.dfat.gov.au/sites/default/files/2017-foreign-policy-white-paper.pdf

Paul Hubbard and Dhruv Sharma, “Understanding and applying long-term GDP projections”, EABER Working Paper Series, Paper No. 119, June 2016: https://eaber.org/wp-content/uploads/2016/06/EABER-Working-Paper-119-Hubbard-Sharma.pdf

Paul Hubbard, A Wealth of Narrations: https://www.amazon.com.au/Wealth-Narrations-1-PC-Hubbard/dp/B0CR6TXX7C

Chris Miller, Chip War: https://www.simonandschuster.com.au/books/Chip-War/Chris-Miller/9781398504127

The Ezra Klein Show, “Israelis Are Not Watching the Same War You Are:, Interview with Amit Segal, 14 June 2024: https://www.nytimes.com/2024/06/14/opinion/ezra-klein-podcast-amit-segal.html