On September 1, 1951, Australia and the United States became formal allies. Seventy years later, they have built one of the world’s closest military alliances, with leaders from both countries often noting their citizens have fought alongside each other in every major conflict of the last hundred years. Today, however, the most immediate strategic challenge to Australia, and perhaps also the United States, comes not from a military conflict, but from economic forces.
In recent years, China has used a variety of economic tools to pressure Australia and other US allies and partners to accommodate Beijing and abandon policies to which its leaders object. Australia has stood firm amidst this coercive campaign, even though doing so has come at a cost. Rhetoric from Washington has consistently supported Canberra and has emphasised the need to cooperate with allies and partners on a range of 'geoeconomic' policy challenges combining economic and security issues, such as supply chain resilience. But thus far, there have been few details about how to make this rhetorical support and commitment to international geoeconomic cooperation a reality. This report seeks to fill that gap.