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Inside Keating’s push to steer Albanese on China and Trump

A new book from James Curran shows the former PM advising the current leader on navigating the "two sharks."

Former Australian Prime Minister Paul Keating has been offering guidance to current Prime Minister Anthony Albanese on navigating Australia's relationship with China and the United States. This insight is detailed in Keating's biography, "Grand Ambition: Paul Keating’s Global Vision for Australia." Following Labor's 2025 election victory, Albanese sought Keating's advice, particularly as he prepared for critical meetings with China's President Xi Jinping and U.S. President Donald Trump.

Keating's primary concern was that Albanese had become "sitting between two sharks" – the China threat brigade and the Americans. He presented a briefing to Albanese with several key points. Firstly, Keating emphasized that Australia and China had no historical conflicts, suggesting a responsibility to work together and address common issues.

He encouraged a shift from "stabilization" to "engagement," which would lead to increased Chinese investment in Australia. Keating also advocated for Canberra to support China's membership in the upgraded Trans-Pacific Partnership, establish a joint commission on energy and climate cooperation, and reassure Albanese that Australia would not automatically align with the U.S. in the event of a Taiwan conflict.

Keating warned Albanese that the Australian people may not support involvement in any conflict, emphasizing that Australia was at a pivotal moment. He reflected on how, 30 years ago, the U.S. could have balanced both the U.S. and China, something that could not be done now. Albanese reported that Chinese President Xi Jinping had shown goodwill during his visit to China, and Keating believed that the relationship between China and Australia would only strengthen.

Additionally, Keating confronted Albanese about Australia's reliance on U.S. military bases, which he argued had made Australia an extension of the U.S. in the Pacific, particularly in relation to China. Keating argued that, by hosting U.S. military assets, Australia had effectively become an enemy of China, and that this was a consequence of our own free will.

Written by urgent.news from Politico EU's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.

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