China’s perceptions of Australia

Australia's relations with China are amongst our most important foreign policy issues. China is maintaining rapid economic growth even while entering a period of political uncertainty. Economic growth is making the country a key trading and investment partner for Australia and its success is increasing Beijing confidence in asserting its position in regional and global affairs. At the same time, however, the decline of Maoist ideology, the growth of regional and social inequality and the decline of the Communist Party's control over people's daily life is throwing the legitimacy of the Party into question. The death of Deng Xiaoping will exacerbate divisions within the Party and might see a difficult period of succession. A more aggressive Chinese foreign policy could develop if a disruptive succession led to the emergence of a weak leadership appealing to virulent nationalism to shore up its position, especially in order to win the support of the armed forces.

The Australia-China relationship has traditionally been dominated by global geopolitical and strategic concerns, but since the 1980s the two countries have built up a range of common bilateral and regional interests, including strong economic ties. Nevertheless, as a growing world power, China still views individual bilateral relations in the context of wider _______ ____ ______ _____ _______ _________ ____ _________.
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