Australia and Japan Strengthen Economic Security Cooperation Amid Rising Global Risks

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Australia and Japan are taking meaningful steps to deepen their strategic economic partnership, with a new agenda focused on bolstering economic security in an increasingly fragmented global environment. In 2025, the United States Studies Centre (USSC) Economic Security Program launched a project to develop a shared economic security framework between the two Indo-Pacific allies. The initiative comes as free trade norms erode and harmful economic competition intensifies across critical sectors like energy, advanced technologies, and supply chains.

The program held two Track 1.5 workshops  in Canberra and Tokyo  between January and June 2025, alongside private consultations with industry leaders, policymakers, and academics. These sessions revealed a strong convergence of strategic interests between the two countries, particularly in areas such as energy security, clean energy technologies, artificial intelligence (AI) governance, critical minerals, and infrastructure protection. The report does not represent academic research but reflects the key discussions and policy recommendations raised during the workshops. Importantly, it identifies shared vulnerabilities and opportunities for deeper bilateral collaboration to address them.

Both Australia and Japan face the challenge of maintaining stable, secure access to critical resources while countering growing geopolitical and economic coercion. With China’s assertiveness continuing to shape regional dynamics, Canberra and Tokyo are increasingly aligning their economic security strategies. Australia’s abundant supply of critical minerals and Japan’s manufacturing and technological expertise make the two nations natural partners in ensuring resilient, transparent, and secure supply chains. Participants also agreed on the urgent need to co-develop regulations around AI and emerging technologies, areas where a unified democratic front could prove essential in shaping global standards.

The project underscores the necessity of building long-term, institutionally supported frameworks for economic security cooperation. While Australia has often relied on broader multilateral trade arrangements, shifting global conditions demand more targeted and strategic bilateral partnerships. The success of this initiative depends on ongoing political will and a clear-eyed focus on national interest. As policymakers look to reinforce economic resilience in a time of uncertainty, deeper alignment between Australia and Japan, two stable democracies with shared values and complementary strengths, offers a practical and much-needed counterbalance to global economic coercion and supply chain vulnerabilities.