Growth Opportunities Missed Due to Focus on China, North Asia: Australian Foreign Minister

Australian Foreign Affairs Minister Senator Penny Wong addresses the National Press Club in Canberra, Monday, April 17, 2023. AAP Image/Lukas Coch

On a day Australia’s current account deficit was reported to be $10.7 billion, Foreign Minister Penny Wong warned the country was missing out on investment opportunities in Southeast Asia.

The foreign minister said the region had grown at an “explosive rate.”

Speaking to the Asia Summit, Wong criticised Australian businesses for being too focused on China and North Asia, meaning other countries have capitalised on the fast-growing regions.

“It’s a pretty confronting picture for a great trading nation like ours that has benefited so much from globalisation,” Senator Wong said.

She further warned Australia was lagging, as investment from China and the United States doubled in Southeast Asia.

“We have a good foundation with the region, but our investment doesn’t keep pace. We are being left behind,” Wong said on Sept. 3.

Further, Wong disagreed with claims that capping foreign student enrolments would impact regional engagement.

“We saw a very large spike in students post-pandemic, for obvious reasons. If you look at universities as a whole, there are differences within institutions. We’re returning to the numbers of 2023, which is a reasonable proposition. It’s still a substantial number of overseas students, and it’s a very important sector. But we need sustainable growth, and the pandemic caused a significant spike,” Wong explained.

Australia Pursues Stability Amid China Concerns

Australia’s foreign minister also expressed concerns about China’s military modernisation, emphasizing the need for transparency and regional stability.

“There will be areas where we can cooperate. Part of that is dealt with bilaterally, but part of this also goes to the nature of the region we want. We have a different view from China, for example, on the South China Sea and the law of the sea. We will keep expressing that, and we will keep encouraging others to express it, because we believe that contributes to stability and peace,” Wong said.

She emphasised that stabilising the relationship with the Chinese Communist Party remained a priority.

“As a great power, China will assert interests that we agree with and others that we disagree with. So, we have to find a way of engaging with China that involves dialogue, cooperation where possible, and clear communication where we disagree, to manage these differences wisely. I think the phrase I used was that we have to navigate it wisely.”

Meanwhile regarding the upcoming presidential election, the minister said the government was prepared to work with whoever became leader of the United States.

“Historically, Australia has worked with whoever is in the Oval Office, and the Oval Office has worked with whoever is at the Lodge. Regardless of political parties, that has always been the case, and it will continue,” Wong stated.