The Belt and Road Initiative: A Model of China’s Investment Cooperation with Australia and New Zealand

The large-scale Belt and Road Initiative (BRI) has undergone significant expansion in recent years. In 2017, China proposed a new route including South Pacific Region (SPR) states, intended to become a “hub” for ships heading to Latin America and back. Australia and New Zealand were chosen as key partners due to their leading positions among the region’s countries and their significant influence over political processes in the SPR. The relevance of the research topic is determined by China’s growing interest in the South Pacific Region and the consequently intensifying Sino-American competition, which significantly impacts the foreign policy decisions made in Canberra and Wellington. The aim of the present study is to identify differences in the approaches in Australia’s and New Zealand’s approaches to the BRI, and the factors influencing their policies regarding the Chinese initiative. Methodologically, the research relies on a comparative analysis of investment volumes from the People’s Republic of China (PRC) into the two countries’ infrastructure projects, as well as general scientific and specific scientific methods of historical and political research, including the narrative method and case studies. The conceptual framework of the study is the theory of hegemonic stability, which allows for examining the Belt and Road Initiative as a new economic regime of an emerging hegemon - China, which seeks to attract close US partners, namely Australia and New Zealand, to its side. The author concludes that political relations do, to a certain extent, influence the volume of Chinese investments. However, despite China’s consistently stable relations with New Zealand throughout under the review period. Chinese investment volumes in Australia were significantly higher. Furthermore, no critical infrastructure project involving China was approved in New Zealand. Meanwhile, despite the significant deterioration in Sino-Australian relations and Australia’s refusal to participate in the BRI, Chinese investors made several substantial investments in the Australian economy between 2013 and 2018.