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Report calls for Australia to grow security, trade and diplomatic ties with Taiwan because of China’s influence

Report calls for Australia to grow security, trade and diplomatic ties with Taiwan because of China’s influence

February 4, 2026 discoverhiddenusacom News

Australia is facing increasing pressure to reassess its approach to relations with Taiwan, as concerns grow over China’s escalating actions toward the self-governed island. A new report from the United States Studies Centre (USSC) argues that Canberra’s current cautious stance risks stagnation in the relationship and may be undermining Taiwan’s trust in Australia as a reliable partner.

Report Highlights Concerns Over China’s Pressure

The USSC report, “Australia-Taiwan relations: Policy Options and Priorities for Engagement,” draws on the expertise of former high-ranking Australian officials, including former Department of Foreign Affairs and Trade (DFAT) secretary Peter Varghese, former Australian Signals Directorate director-general Rachel Noble, and former chief of joint operations Lieutenant General Gregory Charles Bilton. It details China’s increasing military pressure on Taiwan, characterized by more frequent and expansive military exercises near the island – described by one US general as “rehearsals” for a potential invasion.

Did You Know? The report’s authors include Professor Peter Dean, who also contributed to Australia’s 2023 Defence Strategic Review.

Report co-author and USSC senior defence adviser Peter Dean stated that China is also actively working to isolate Taiwan diplomatically. He questioned why Australia isn’t doing more to support Taiwan, particularly as other nations increase their engagement, if it is committed to maintaining the status quo in the Taiwan Strait and deterring conflict.

Recommendations for Increased Engagement

The USSC report proposes several steps Australia could take to strengthen its relationship with Taiwan. These include expanding Australia’s diplomatic presence on the island, considering visits by Australian ministers, and fostering greater cooperation in areas like green energy. The report also suggests increasing awareness of Taiwan within the Australian public service and exploring ways to enhance defence cooperation, potentially through the appointment of a de facto defence attaché in Taipei.

However, the report acknowledges the sensitivity surrounding any increased defence ties, given China’s strong objections. It suggests focusing on providing Taiwan with “logistical and material support” for dual-use technology and facilitating dialogues to improve Taiwan’s preparedness.

Australia’s Balancing Act and Eroding Trust

Australia’s approach to Taiwan is currently constrained by its long-standing “One China policy,” which recognizes the People’s Republic of China as the legitimate government of China while acknowledging, but not necessarily agreeing with, Beijing’s claim over Taiwan. This policy allows for informal political and economic ties with Taiwan, but has led to frustration from Taipei, particularly regarding Australia’s reluctance to support Taiwan’s bid to join the CPTPP trade agreement.

Expert Insight: The report suggests Australia’s prioritization of stable relations with Beijing may be unintentionally damaging its standing with Taiwan, potentially hindering its ability to act as a reliable strategic partner in the region.

The report warns that Canberra’s caution has “unintentionally eroded Taipei’s trust in Australia.” It argues that other countries have demonstrated a greater willingness to deepen their relationships with Taiwan.

Potential Future Developments

If Australia were to adopt the report’s recommendations, we could see increased diplomatic activity between Canberra and Taipei. Ministerial visits, while potentially provoking a response from Beijing, could signal a stronger commitment to Taiwan. Increased economic cooperation, particularly in emerging technologies, is also a possible next step. However, any move towards formalizing defence ties remains a sensitive issue and could strain relations with China.

Former DFAT secretary Peter Varghese expressed reservations about bolstering defence cooperation, arguing it could negatively impact Australia’s relationship with China without providing commensurate benefits. This suggests internal debate within Australia regarding the appropriate level of engagement with Taiwan.

Frequently Asked Questions

What is Australia’s current policy towards Taiwan?

Australia adheres to a “One China policy,” recognizing the People’s Republic of China as the legal government of China and acknowledging Beijing’s position that Taiwan belongs to the PRC. This allows for informal ties with Taiwan but limits formal diplomatic engagement.

What are the main concerns raised in the USSC report?

The report expresses concern that Australia’s cautious approach to Taiwan is eroding trust with Taipei and that China is increasing its pressure on Taiwan through military exercises and diplomatic isolation.

What specific actions does the report recommend Australia take?

The report recommends expanding Australia’s diplomatic presence in Taiwan, considering ministerial visits, boosting economic cooperation, and exploring ways to enhance defence cooperation, including potentially appointing a de facto defence attaché.

As Australia navigates its relationship with both China and Taiwan, how might a shift in policy impact the broader geopolitical landscape of the Indo-Pacific region?

australia, Australia Taiwan news, Australia Taiwan relations, Australia-Taiwan relations: Policy options and priorities for engagement, Beijing, Canberra, China, Gregory Charles Bilton, Peter Dean, Peter Varghese, Rachel Noble, Report, Taipei, Taiwan, United States Studies Centre

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