The international system is currently experiencing a period of profound structural upheaval. The long-standing, rules-based international order – the very foundation of global stability since the mid-20th century – is being openly challenged to varying degrees by the world’s most powerful actors. As Russia persists in its invasion of Ukraine and China increasingly weaponises its formidable economic power to coerce sovereign nations in violation of World Trade Organization norms, the transformation of the United States presents a third, perhaps more jarring, danger.
Under the second Trump administration, the US has pivoted sharply toward a rigorous America First doctrine. From the imposition of reciprocal tariffs that challenge international trading regimes to aggressive military and foreign policy interventions in Venezuela and the Middle East – including the bombings of Iran – the US appears to be eschewing its traditional role as the guarantor of global norms. For Japan and Australia, two nations that have historically viewed the US as their most important strategic anchor, this reality is more than a policy shift; it is a fundamental change in the geopolitical landscape.
Faced with this new reality, Tokyo and Canberra have realised that they can no longer pretend the status quo remains intact. To secure their futures, they have accelerated a transition from being mere reliable neighbours to becoming indispensable partners. This deepening bond is not simply a reaction to external pressure but a recognition that Japan and Australia share a perfectly complementary strategic, geopolitical and geo-economic alignment.
A landmark in defence cooperation: the Mogami-class frigates
The most visible manifestation of this new era of trust is the recent defence agreement signed in Melbourne. Defence Minister Shinjiro Koizumi’s April meeting with Deputy Prime Minister and Defence Minister Richard Marles resulted in a historic contract: Australia’s purchase of three upgraded Mogami-class frigates.
This marks a monumental milestone as Japan’s first major export of sophisticated defence equipment. The significance, however, extends beyond the initial sale. In a move that bolsters Australian industrial capability, the fourth vessel and subsequent units are slated for construction in the Henderson Defence Precinct in Western Australia. This arrangement provides a major boost to Australian manufacturing while ensuring that the two nations’ naval forces are interoperable and technologically aligned.
This hardware acquisition is matched by increased operational synergy. The Reciprocal Access Agreement has paved the way for upgrading joint military exercises and transforming the two defence forces into interoperable partners capable of maintaining maritime security in the Indo-Pacific.
Energy and economic security: the bedrock of a quasi-alliance
While defence makes the headlines, economic security is the quiet engine driving this partnership. Japan remains one of the world’s most resource-poor advanced economies, while Australia is a global energy superpower. For Japan, Australia is not just a provider; it is a vital lifeline for coal and liquefied natural gas. Japan in turn provides Australia petroleum products and other essentials.
During Takaichi’s visit to Canberra from May 3 to 5, discussions with Prime Minister Albanese moved beyond traditional energy. The two leaders reached pivotal agreements regarding the stable supply of critical minerals – the essential ingredients for the green energy transition and advanced high-tech industries. By securing these supply chains, Japan and Australia are effectively de-risking their economies from external over-dependency.
Furthermore, the recent visit by Australian Foreign Minister Penny Wong to Tokyo for talks with Japan’s Foreign Minister Toshimitsu Motegi and Minister for Economy, Trade and Industry Ryosei Akazawa underscores the multi-dimensional nature of this cooperation. Their focus on economic security – spanning cyber security, intelligence sharing and infrastructure development – serves as a protective shield against the economic weaponisation practiced by other global powers.
Natural partners in a changing world
The rapid diplomatic manoeuvres of recent weeks are unfolding against a backdrop of global tension. With the US and China scheduled for a high-stakes summit on 14 and 15 May, Japan and Australia find themselves in a precarious position. By strengthening their bilateral ties, they are creating an anchor of stability – a partnership of two advanced democracies that see the world through the same lens.
This alignment is born of shared vulnerabilities but fuelled by shared strengths. Japan and Australia are natural partners because their needs and capabilities fit together like pieces of a puzzle:
—Defence: Japan’s advanced technology meets Australia’s strategic geography and industrial ambition. Australia’s readiness to allow Japan joint exercises in Australia meets Japan’s vital need of force training.
—Energy and economy: Australia’s vast resources meet Japan’s high-tech demand and capital investment. Japan meets Australia’s need for petrol products and other industrial products.
—Diplomacy: Both nations serve as the primary advocates in the region for a rules-based order at a time when the traditional guardians of that order have turned inward.
Reshaping the future
The current global climate dictates that nations must take a hard look at reality and adjust their positions. Japan and Australia have done exactly that. They have moved beyond the shadow of their traditional security providers to forge a relationship that is proactive rather than reactive.
From the shipyards of Perth to the ministerial offices in Tokyo, the message is clear: Japan and Australia need each other more than ever. By integrating their defence industries, securing their energy futures and aligning their diplomatic voices, they are not just coping with a changing world – they are actively shaping a more stable and secure Indo-Pacific. This complementary relationship, promoted steadily and significantly in both the economic and defence sectors, stands as a beacon of how mid-sized powers can maintain the international order through unity, mutual interest and shared vision.
This article was originally published in Asialink Insights.
