A shift in US political power following the Democrats’ midterm win could reshape Australia’s strategic alliances, with implications for AUKUS, defense partnerships, and economic ties with China. Australian officials and industry leaders are monitoring the fallout, particularly as concerns over rising living costs and datacentre expansion remain pressing domestic issues. The outcome may strengthen trans-Pacific cooperation but also introduce new uncertainties for trade and security policies. Meanwhile, lingering tensions tied to regional conflicts continue to test the government’s stability.
Anthony Albanese’s government has taken a blow due to Iran war but voter anxiety around cost of living and datacentres may hit harderGet our daily political email, free app or daily news podcastThe Democrats’ stunning midterm victory should broaden Australia’s alliance with the US, observers say, even as a new power base emerges in Washington, affecting Aukus, datacentre development and relations with China.Cabinet ministers, diplomats and Australia’s defence industrial sector closely watched the results this week, with control of the US Congress flipping to the Democrats and the outlook for Donald Trump’s final two years in office badly dinted. Continue reading...