Australia and the South China dispute

To the casual observer, territorial disputes in the South China Sea may seem irrelevant to Australia's interests. However, due to the increasingly close relationship between state power and economics, where economic strength begets political influence, and the fact that Australia's top 2-way trading partners are all located in the Asia-Pacific region, such disputes cannot be ignored.

The South China Sea, made up of over 200 islands, rocks and reefs is one of the world's most important sea lanes, with over one third of the world's trade passing through. The area is also highly contested, with the Philippines, Malaysia, Brunei, China, Taiwan and Vietnam all claiming sovereignty over overlapping parts of the region.

Japan's recent unveiling of a new warship, aircraft carrier lookalike the "Izumo", as well as the Philippines' efforts to seek arbitration in relation to China's claims over the South China Sea in the International Court of Justice, serve as a timely reminder that territorial disputes in the Asia-Pacific region are far from being resolved.

The latest flare-ups have rekindled many of the underlying enmities in East Asia. The choice of name for the Izumo, which shares its title with the Japanese ship that led the invasion of China in the 1930s, sparked reports across the Chinese media of Japanese preparations for re-militarisation. This development is part of increasing regional tension, with China's unveiling of its own aircraft carrier, the Liaoning, in 2012, and Japan's nationalisation of the Senkaku/Diaoyu Islands that same year raising the possibility of future territorial conflict in the East China Sea.

Likewise, the Philippines claim at the International Court of the Sea, while seeming to offer a means of resolution, may in fact end up having the opposite effect. By directly appealing to the international courts there are concerns that ASEAN's own conflict resolution measures, as defined under the Declaration of the Law of the Sea, may be undermined and may have adverse and unintended consequences upon the claims of other ASEAN states.

The states involved in these territorial disputes have for the most part adopted a 'wait and see' attitude, putting off long-lasting resolution for a future time and issuing empty statements expressing satisfaction with the status quo. Yet, while waiting for this 'future', tensions have continued to rise along with the possibility of an outburst of conflict. According to Ron Huisken, Senior Fellow at the Australian National University's Strategic and Defence Studies Centre, what is lacking in resolving these territorial disputes is 'common sense, cooperation and leadership.'

Meanwhile, in the background, the US is completing its "pivot" to the Asia-Pacific and will play an important role in maintaining stability and security in the region. However, some states have expressed concern over US 'meddling' in Asian affairs, while others claim the US plans to 'contain' China.

So what does this mean for Australia as it enters the "Asian Century", and what role can Australia play in disputes that are seemingly far removed from Australia's own national security interests?

As Australia takes chairmanship of the G20 in 2014 and assumes a seat on the UN Security Council for 2013-14, Australia can play a greater role in resolving these regional disputes while assuming a role in what Kevin Rudd called in his first National Security Statement to the Australian Parliament in 2008 "creative middle power diplomacy."

And unlike the US, Australia may be able to avoid claims of meddling.

As the world's 13^th largest economy and the 4^th largest economy in Asia, with 1 in 4 Australians born overseas and with our population speaking over 260 languages, Australia is ideally placed to play a role in mitigating the regional tensions and take a greater leadership role.

According to Colin Bradford, from the Brookings Institution, middle powers are able to take on a greater leadership role in negotiating amongst other countries. This is because they stand for more than narrow self-interest, they care for multilateralism, they take a more pragmatic approach to global problems and importantly are able to 'cushion' the tensions between major powers. Due to Australia's position in the Asia-Pacific, we are well positioned to fulfil this role.

As former Foreign Minister Gareth Evans has pointed out, Australia as a middle power has sufficient credibility and capacity to carry out international policy tasks which would allow the world to be a 'safer, saner, more just and more prosperous' place.

As Asian states find themselves in a situation lacking in firm leadership and without a means to resolve these disputes, Australia is well placed to use its naturally gifted location in the region along with its middle power status to help play a role in finally addressing these conflicts of sovereignty.

Australia could take several approaches, taking advantage of its unique place on the international stage over the coming year.

As Australia assumes chairmanship of the G20, it could encourage Asian G20 leaders to take a more active role in negotiations while widening the agenda to include long-term strategic issues, such as territorial disputes. Australia can use its international leverage to improve relations between the other G20 countries, where creative diplomacy and new ideas are able to prevail over economic might and large populations.

Secondly, Australia could take advantage of its close relationship with the US to take a more active role in dispute resolution. While this may run the risk of other countries accusing Australia of working with the US to contain Asia, Australia could stress its neutrality and emphasise that the conflict should be resolved in accordance with international law. Finally, Australia should continue to engage in regional forums.

While Kevin Rudd's Asia Pacific Community didn't quite reach the light of day, his effort should be commended for aiming to build a new regional architecture. Australia should continue to play a leading role in other regional forums such as East Asia Summit, APEC and ASEAN++ forums.

Ensuring greater regional stability is important, as this will allow the region to continue to thrive. This will allow Australia to continue to share in regional growth while allowing us to seize the economic, cultural and social opportunities flowing from this century.

Australia is uniquely placed to use its middle power diplomacy to secure a beachhead against instability in the region and assist in resolving territorial disputes. Engaging in cooperative diplomacy and creative problem solving will ensure there is greater stability in the Asia-Pacific region, while also projecting Australian influence amongst our biggest trading partners.

By asserting itself as a responsible middle power, Australia will ensure it continues to flourish in this Asian Century enabling us to seize the opportunities and growth that this Asian ascendance is predicted to bring.