Indo-Pacific Insight Series Vol 26
From Export to Engagement: Australia’s Knowledge Diplomacy in the Indo-Pacific
January 2026
By Hangga Fathana
In an era of profound global uncertainty, Australia’s foreign policy is under renewed scrutiny. The return of Donald Trump to the White House has unsettled confidence in Washington’s reliability, while China remains an indispensable economic partner, yet a strategic rival marked by mistrust. For a middle power such as Australia, these dynamics revive the country’s longstanding “fear of abandonment” – the anxiety that its security and prosperity ultimately depend on others’ choices. Traditionally, Canberra has sought reassurance through alliances and hard power commitments. Yet these tools alone cannot secure the trust and influence that Australia needs across the Indo-Pacific.
Amid this shifting landscape, higher education stands out as Australia’s most consistent and recognisable instrument of soft power. The record 839,199 international students enrolled in 2025, including 450,580 in universities, illustrates its enduring scale and reach. Students from across Asia, the Pacific and beyond engage daily with Australian classrooms, research centres and communities, creating webs of relationships that extend long after graduation.
These networks represent an enduring source of goodwill and mutual understanding—assets no military alliance or trade deal can replicate.
Key Messages
↗ Higher education remains Australia’s strongest and most recognisable soft power instrument in the Indo-Pacific and is an increasingly important diplomatic tool in a challenging strategic landscape.
↗ However, to date Australia’s international education policy has been shaped by domestic pressures rather than a coherent diplomatic vision.
↗ A narrow focus on the sector’s export value and policy volatility risk is eroding the very trust Australia’s soft power depends upon.
↗ By reframing education as knowledge diplomacy – through inclusive scholarships, long-term institutional partnerships and alignment with foreign policy goals – Australia can transcend this paradigm.
↗ Such a shift would not only sustain Australia’s regional influence but strengthen the country’s capacity to shape, rather than merely respond to, regional dynamics.
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Indo-Pacific Insight Series
The Indo-Pacific Insight Series offers in-depth analysis of strategic trends shaping the Indo-Pacific. These publications draw on regional expertise to provide considered, forward-looking assessments of key foreign policy, security and economic issues. Designed for policymakers, analysts and engaged readers, the series explores the deeper context behind headline developments.