‘The worst thing we could do is pick one over the other’: an Australian economist on why US-China competition is ‘a gift’
News Source
•Sat, 24 Oct 2026 19:00:42 GMT
📰 What Happened
Economist John Edwards says Australia should stop fearing the rivalry between the US and China. In a new paper called Overhaul, he calls that competition a gift. Australia has security ties with the US and trade ties with China.
He says the worst thing Australia could do is pick one over the other. For a small country, having two big players is better than having one.
He also wants Australia to rebuild its economic statecraft and open up more to foreign investment. In recent decades, security concerns have crowded that work out.
🔍 The Backstory
Edwards was a top economic adviser to Paul Keating in the early 1990s. He has worked in the public and private sectors for three decades and is now a fellow at the Lowy Institute.
He says Australia is too paranoid about China. He points out that Europe, Canada, Indonesia and India are not preparing for war with China, so why would Australia?
He argues AI and robots could restart local manufacturing, since high wages once made it uncompetitive. But he warns it will not create many jobs.
🎯 Why It Matters
China buys much of what Australia sells, and the US is our main security ally. Getting that balance wrong could cost jobs or safety.
Economist John Edwards says Australia should stop fearing the rivalry between the US and China. In a new paper called Overhaul, he calls that competition a gift. Australia has security ties with the US and trade ties with China.
He says the worst thing Australia could do is pick one over the other. For a small country, having two big players is better than having one.
He also wants Australia to rebuild its economic statecraft and open up more to foreign investment. In recent decades, security concerns have crowded that work out.
Edwards was a top economic adviser to Paul Keating in the early 1990s. He has worked in the public and private sectors for three decades and is now a fellow at the Lowy Institute.
He says Australia is too paranoid about China. He points out that Europe, Canada, Indonesia and India are not preparing for war with China, so why would Australia?
He argues AI and robots could restart local manufacturing, since high wages once made it uncompetitive. But he warns it will not create many jobs.
China buys much of what Australia sells, and the US is our main security ally. Getting that balance wrong could cost jobs or safety.