Since 2022, Australia's Labor government pursued a deliberate 'stabilization' of relations with Beijing, dropping confrontational rhetoric even as China sanctioned Australian wine, barley, lobster, and coal — sanctions fully lifted by December 2024. Trade boomed regardless, with exports to China nearly doubling from $116 billion in 2017 to $218 billion in 2023.
That discipline held through a Chinese naval flotilla circling the continent and unannounced live-fire drills in the Tasman Sea, but cracked after Prime Minister Albanese told the New York Times that China seeks regional 'hegemony.' Beijing then tested a nuclear-capable missile in the Pacific, which Albanese called 'provocative,' just as Canberra signed new defense pacts with Fiji, Papua New Guinea, and Vanuatu.
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