Canberra will pursue moderation amid China-US tensions

Significance

Maritime disputes in the South China Sea throw two key Australian foreign policy objectives into contention: maintaining close security ties with Washington and developing commercial relations with China. In this context, Foreign Minister Julie Bishop announced in August that the Department of Foreign Affairs and Trade (DFAT) would would produce a white paper on Australia's foreign policy, the first since 2003.

Impacts

• Hosting the 2018 ASEAN-Australia Biennial Summit will help Australia promote business ties with South-east Asia.
• Post-Brexit talks with the United Kingdom would likely see receptive Australian counterparts, but Pacific ties will be Canberra's priority.
• Australia would probably find a Hillary Clinton presidency more conducive to the status quo compared to Donald Trump's 'unknown quality'.