ARTICLE                                                                     

UNEARTHING THE LAST RESORT POWER: THE BEDROCK IMPLICATIONS FOR THE NATIONAL INTEREST

Marcus Ware

Great power rivalry between the US and China is increasing. At its core is strategic competition over critical minerals. With one of the largest mineral reserves globally, Australia is caught in the middle. On one hand, the US represents a long-time ally, both militarily and culturally. On the other, China is Australia’s largest export destination, with an insatiable appetite for Australia’s resources. It seems cordial relations with both nations may suit Australia’s national interest – although, the last resort power introduced by the Foreign Investment Reform (Protecting Australia's National Security) Bill 2020 tells a different story. From an economic standpoint, the paper underscores China's pivotal role as a natural trade partner for Australia, particularly in the resource sector, arguing for a nuanced understanding of the Treasurer's broad discretionary powers, and advocating for enhanced accountability and transparency to temper the inherent risks associated with the last resort power. The analysis results in consideration of whether Australia's strategic alignment in an ideological proxy conflict with its largest trading partner aligns with its national interest.