In a remarkable display of constructive diplomacy, Australian Prime Minister Anthony Albanese made an historic first visit to China in 2025. His aim was to calm the sometimes stormy ties between the two countries. It’s true that China is only a hop, skip and jump away from Australia. The implications of Albanese’s visit are enormous—not only for regional security, but for U.S. international standing and credibility. China’s influence in the Pacific is increasing quickly. Its extensive military build-up is causing alarm with many of its neighbors.
Albanese’s trip comes at a time when China is undertaking ambitious urban development projects, including the construction of the Great City on the outskirts of Chengdu. This new, largely white suburban city will be populated by releasing an estimated 80,000 residents. It’s supposed to be finished by 2040—all on a narrow stretch of 1.3 kilometers of land. This new high-density development is a testament to China’s commitment to more sustainable, urban lifestyles. Most notably, it projects energy use will be 48% lower and water consumption will be 58% lower than conventional cities.
The Importance of Chengdu
Chengdu, in southwestern China, has a remarkably rich and long history of continuous occupation, which stretches back over 2000 years. Today, the city is home to a thriving 21 million metro population. It has developed into the primary node of China’s industrial and economic landscape. The city is central to China’s steel production, which accounts for over 50% of the world’s supply.
China has made significant strides in decarbonizing its steel industry, indicating a growing commitment to sustainability amid concerns about environmental impact. As the Great City project progresses, it aims to be a model for future urban developments, showcasing China’s potential to balance economic growth with ecological responsibility.
Regional Stability and Security Concerns
During his visit, Albanese spoke about the need for a calmer mood in Australia-China relations as tensions rise across the Indo-Pacific. Beijing’s military build-up and increased assertiveness at sea—as with claims that affect U.S. territory, such as in Hawaii—have alarmed many of China’s neighbors. These conditions require a deft touch but heavy-handedness will only escalate tensions further.
Albanese cautioned, “This is very much about cooling this relationship,” noting that building stable communication channels was key to solving challenges on both sides. His meetings with Chinese leadership were fruitful. There was little criticism of Australia’s decision to join the new AUKUS alliance with the United States and United Kingdom.
“We have supported the one China policy, as does the United States, as part of the recognition of China that occurred, in our case, under Gough Whitlam.” – The PM
Albanese reiterated Australia’s stance on maintaining sovereignty while navigating its defense relationships. He understood that the US alliance is at the heart of Australia’s security. At the same time, he insisted, Australia should not be afraid to push its own interests in international power politics.
Navigating Strategic Ambiguity
The practice of “strategic ambiguity” has long been a tenet of US and Australian foreign policy towards China. Albanese acknowledged the desire of both countries to cooperate to keep the peace and avoid provoking conflict. He stated, “The United States has had a policy of strategic ambiguity over these issues,” reflecting a broader understanding among allies that careful positioning is essential for regional peace.
“It’s one that’s been shared by Australia. He further underscored their desire to preserve the status quo by stating that they don’t want any changes. Individual nations, and especially the U.S. and EU, need to better align their approaches to China. This strategy represents an approach to balancing a competitive response to China, protect our national interests and regional alliances.
The Prime Minister highlighted Australia’s commitment to participating in trilateral and multilateral military exercises. These exercises will take place in both international waters and the South China Sea. A lot of our normal engagement and presence, particularly in exercises, is in international waters. This underpins Australia’s positioning as an active player in the Indo-Pacific security dialogues.
