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• Australia views its alliance with the United States as the cornerstone of its security policy and sees strengthening it as playing an indispensable role in ensuring its ability to navigate a regional security environment that is increasingly complicated by China's more assertive behavior, including interference in Australian politics.
• At the same time, while China is a major economic partner for Australia, particularly with respect to trade, Australia aims to maintain a stable relationship with China even as it pushes back against Chinese influence and interference.
• There is growing concern in Australia that China's rising power and influence undercuts Australia's influence in the Indo-Pacific. Australia aims to gain back lost ground, particularly in the Pacific Islands, where it is stepping up its influence as it seeks to counter surging Chinese presence and become the partner of choice in the region.
• New Zealand has benefited from a growing economic relationship with China since signing a free trade agreement in 2007, but it faces challenges associated with China's growing power and influence. New Zealand is also concerned about the durability of the regional and global order on which its security and prosperity depend.
• New Zealand has responded by strengthening its security ties with the United States since the 2010 Wellington Declaration. Additionally, New Zealand is increasing its regional outreach, most notably by intensifying its engagement with the Pacific Islands.

This report on Australia and New Zealand is part of a project examining the perspectives of U.S. allies and partners in the Indo-Pacific as they formulate and implement their responses to China's more assertive foreign and security policy and to a more competitive U.S.-China relationship. Australia and New Zealand have expanded their economic ties with China, but there is growing concern in both countries about China's rising power and influence. In response, Australia is strengthening its alliance with the United States and becoming more actively involved in the Indo-Pacific region, especially in the Pacific Islands. New Zealand is also strengthening its security ties with the United States and intensifying its regional outreach (particularly, with its Pacific Island neighbors).

This stepped-up engagement in the region creates opportunities for the United States and, specifically, for the U.S. Department of Defense and the U.S. Air Force to work with these two countries (and with other regional partners) in new and innovative ways, both operationally and using soft-power tools and approaches.

• Chapter One

  Introduction

• Chapter Two

  Australia's and New Zealand's Diplomatic and Political Relationships

• Chapter Three

  Australia's and New Zealand's Economic Relationships

• Chapter Four

  Australia's and New Zealand's Defense Relationships

• Chapter Five

  Assessment and Outlook

• Chapter Six

  Options for the United States, U.S. Department of Defense, and U.S. Air Force

• Appendix A

  Detailed Framework Variable Coding

• Appendix B

  Australian Defense Cooperation