Kevin Rudd at the Mackinac Policy Conference 2025
Top Takeaways
Australia remains committed to the U.S. as a key ally.
Michigan offers opportunities for continued investment.
Strategic global alliances are key for navigating China’s ambitions for might in military, economy, and AI advancements.
Speaker and Interviewer
Kevin Rudd, Ambassador of Australia to the U.S; Former Prime Minister, Australia
Sandy K. Baruah, President and Chief Executive Officer, Detroit Regional Chamber
U.S.-Australia Alliance and Political Resilience
Political instability and unpredictable policy may be rattling relationships between the U.S. and some of its allies, though Australia remains unwavering in its commitment to the U.S. as a key global partner, said Kevin Rudd, Ambassador of Australia to the U.S and Former Prime Minister of Australia.
“The U.S. is a big country, with a dynamic democracy like ours,” said Rudd, during a conversation with Sandy K. Baruah at the Mackinac Policy Conference. “We’ve navigated this relationship with America over 15 different U.S. presidents.”
Alliances between the two countries remain strong because they are anchored in common values and common interests, Rudd said. Among those interests is Michigan’s automotive industry.
“What more can we be doing together?” Baruah asked. “Do you see an opportunity for us to expand our relationship?”
Economic Collaboration and Investment Opportunities
“Australians have two deep religions: General Motors and Ford,” Rudd said. Ford’s design shop is in Melbourne, and we employ thousands of people there. We design the engines for the Ford Ranger, which is the largest-selling car in Australia, and the engine is built here.”
The opportunities to invest in Michigan are part of a continued and evolving strategic alignment, which was a central part of the discussion.
“Looking forward to the automotive sector, for example, we have inbound investments from a large Australian company called Fortescue, with a quarter of a billion dollars in batteries that are used in the car industry here in Detroit,” Rudd said.
Additional opportunities for economic growth and resilience include mining, processing, and stockpiling rare earth materials and large-scale strategic investments.
“Australia’s pension funds are among the biggest in the world because we have had this policy for 35 years, where we require every Australian to invest 12% of their income,” Rudd said. “The cumulative effort is that with 27 million people in Australia, we now have funds under management of just under $3 trillion. That’s larger than the sovereign funds of Saudi Arabia, the [United Arab Emirates], and Qatar combined.”
While some of those funds will be reinvested back into Australia, the country also plans to prioritize diversifying offshore investment.
“Australians are coming here, and they’re investing in big, long-scale, long-term infrastructure projects in various states in the U.S., and that can happen here in Michigan as well,” Rudd said.
Geopolitical Strategy and China’s Global Role
Baruah also asked Rudd, an internationally recognized expert on China, about the various geopolitical and economic complexities of how Western and G7 nations can effectively engage with that nation.
“China is neither friend nor foe to countries like yours and ours,” Baruah said. “What is China’s strategy?”
China aspires to become the world’s largest military and the world’s largest economy, Rudd said. The unfolding technological revolution in AI and climate change will also play a key role in the collective future.
“China is a common denominator, so it will be important to deter through deterrence,” Rudd said. “We also will need to navigate managed strategic competition and have a political mechanism to arbitrate both of them.”
This 2025 Mackinac Policy Conference session was crafted in partnership with Crain’s Content Studio.
Source: https://www.detroitchamber.com/a-conversation-with-kevin-rudd/