Australia's U‐Turn on Chinese Investment
A Neoclassical Realist Perspective
Bibliographic Data
| ID | 6444313 |
|---|---|
| Authors | Rei Koga (0009-0008-5465-7266, King's College London, corresponding author) |
| Year | 2025 |
| Volume | 40 |
| Issue | 1 |
| Pages | 37-68 |
| Publication date | 2025-03-12 |
| Peer Reviewed | Yes |
| Open Access | Yes |
| Type | ARTICLE |
| Venue | Pacific Focus (JOURNAL) |
| Journal identifiers | ISSN: 1225-4657 • E-ISSN: 1976-5118 |
| Publisher | Wiley (PUBLISHER • GB) |
| DOI | 10.1111/pafo.12273 |
| OpenAlex | W4408420309 |
| Language | EN |
| References cited | 24 |
The late 2010s saw a rise in restrictive foreign direct investment (FDI) policies, especially in developed nations. This research uses Australia's 2018 regulation as a case study to explore the political drivers behind the trend. Drawing on a neoclassical realist (NCR) framework, it focuses on the threat perceptions of the foreign policy executive (FPEs) and analyzes how concerns about Chinese sharp power influenced Australia's significant policy shift on FDI. The study argues that espionage‐related ideological challenges and strengthened ties between political leaders and security agencies were pivotal in driving these changes. It also explores the Treasury's evolving stance on balancing the economic benefits of FDI with national security concerns. This article sheds light on the intelligence agency's role in forming a more security‐oriented FDI policy
China · Economics · Investment (military · Neoclassical economics · Perspective (graphical · Political science · Politics · Positive economics · International Business and FDI · International Development and Aid · Law · Mathematics · State Capitalism and Financial Governance
Introduction
Neoclassical Realist Theory of International Politics
Threat assessment, the state, and foreign policy
The Information Revolution and Power
Legitimisation of Foreign Direct Investment Screening Among Business Actors
Middle power hedging in the era of security/economic disconnect
The Securitization of ‘Chinese Influence’ in Australia
Transition from hedging to balancing in Australia’s China policy
Australia And China
To balance or to bandwagon? Adjusting to China's rise during Australia's Rudd–Gillard era
Neoclassical Realism and Theories of Foreign Policy
"What Is "Sharp Power
Kenneth Waltz is not a neorealist (and why that matters)
Strategic hedgers? Australia and Canada's defence adaptation to the global power transition
| Citation velocity | historical |
|---|---|
| Highly cited | No |