Australia & Taiwan: Strengthening Ties Amid China's Rising Pressure | USSC Report Analysis (2026)

A new report has sparked a crucial debate: should Australia strengthen its ties with Taiwan, despite China's looming shadow? The report urges Australia to step up its game in security, trade, and diplomacy with Taiwan, a move that challenges the current cautious approach towards the island nation.

The United States Studies Centre (USSC) has released a thought-provoking report, authored by academics and advised by prominent figures like Peter Varghese, Rachel Noble, and Lieutenant General Gregory Charles Bilton. The report argues that Australia's relationship with Taiwan is at risk of stagnation due to the government's cautious stance.

But here's where it gets controversial: China considers Taiwan its territory and has been intensifying military activities near the island, prompting concerns about an invasion. The report suggests that Australia should respond by deepening ties with Taiwan, especially as other nations are taking similar steps.

"Why aren't we doing more to support Taiwan?" asks Professor Peter Dean, a co-author of the report. He advocates for increased diplomatic presence, ministerial visits, and cooperation in sectors like green energy. But the challenge lies in Australia's long-standing 'One China' policy, which complicates formal relations with Taiwan.

Taipei's frustration is growing as the Albanese government hesitates to support its CPTPP trade agreement aspirations. The report warns that Australia's focus on maintaining stability with Beijing may have inadvertently damaged Taipei's trust. It suggests that Australia's cautious approach has hindered the development of a long-term strategy for Taiwan.

And this is the part most people miss: the report recommends providing Taiwan's military with support for dual-use technology and facilitating direct communication with the Defence Department. However, former DFAT secretary Peter Varghese disagrees, arguing that such actions could harm Australia's relationship with China without significant benefits.

The report stops short of advocating for public support of Taiwan's CPTPP bid but suggests exploring opportunities to engage with the trade pact. It also provides a comprehensive list of recommendations to enhance economic ties, including critical mineral supply chains and emerging technologies.

Professor Dean emphasizes the need to broaden the public discourse, moving beyond the security dilemma. He argues that Taiwan's role in global supply chains and the potential consequences of an invasion or blockade should be central to the discussion. By focusing solely on the worst-case scenario, the policy options have become limited.

What do you think? Should Australia prioritize its relationship with Taiwan, despite the potential risks? Or is maintaining the status quo with China the safer option? The report invites a nuanced conversation, and your insights are welcome.

Australia & Taiwan: Strengthening Ties Amid China's Rising Pressure | USSC Report Analysis (2026)
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