More and more Australian business is becoming enmeshed in trade with China – that’s where the money is coming from. China and Australia recently signed a Free Trade Agreement (FTA) in what some are calling a “watershed moment” in this process. Yet the United States, Australia’s traditional military ally and still its most significant foreign investor, is engaged in an increasingly tense struggle with China for domination over the Asia-Pacific. How do these two factors play out in the struggle for economic, political and military hegemony in Asia?