Beyond Balancing: Australia's Dual-track China Policy.

This article analyzes Australia's China policy, arguing that it is best understood through a "dual-track" approach that combines hard balancing with economic cooperation despite clear threat perceptions of China. Unlike the traditional balancing theory—which predicts economic decoupling amid security rivalry—and the earlier hedging strategy based on uncertainty about China's intentions, Australia simultaneously pursues robust military measures (such as acquiring nuclear-powered submarines through the AUKUS alliance) and maintains strong economic ties with China to maximize both security and economic gains. This dual-track strategy incorporates geoeconomic restrictions in sensitive sectors to mitigate security risks while capitalizing on China's economic rise, reflecting Australia's status as a middle power trading state. The article further notes that this approach, characterized by the "fear and greed" motto, also applies to other middle powers like Japan and represents a novel pattern in state responses to rising powers after threat certainty is established.