Canberra's Beijing Balance: Australian perceptions of and responses to Chinese power

This chapter focuses on the Northern Distribution Network (NDN), Caspian energy resources, and drug smuggling issues. The status of military cooperation between Central Asia and China is linked with the Shanghai Cooperation Organization (SCO) framework of multilateral cooperation. The current rise in China's military power would not pose an immediate and direct challenge to Russia. The strengthening of the SCO military cooperation is still limited both in structural and operational terms, and the main defining ethos of SCO multilateral security component will always be the principle of non-interference. The key geographical location of Central Asia offers an effective energy supply route to multiple markets. While Central Asia energy export potential is still significant in the long-term, the medium-term production outlook remains uncertain. On a North-South axis, Russia and Iran do not offer viable market opportunities for Central Asian energy resources owing to their own large gas reserves and recent dispute on gas deliveries.