Why Australia is paying China up to $14m every year

Security experts are calling on the Australian Defence Force to rethink its decision to spend up to $14m a year in China.

Security experts are calling on the Australian Defence Force to rethink its decision to spend up to $14m a year on Chinese-made apparel.

The Australian Strategic Policy Institute’s Michael Shoebridge said Defence needed to come up with an alternative for acquiring parts of its uniforms manufactured in China.

Mr Shoebridge noted the volatile and frosty diplomatic relationship between the two nations had already led to trade embargoes on other goods.

“A country that will stop lobsters going into China from Australia, in times of political tension, could well stopped supplies to our military coming towards us in times of crisis,” Mr Shoebridge told 3AW radio.

He said Defence had already reduced it dependence on China to produce military clothing and equipment in recent years.

Some parts of the ADF’s uniforms and other apparel are manufactured in China. Picture: NCA NewsWire / Dan Peled

But he said it would be “really smart to shift even further” and to come up with alternatives to other essential products that are manufactured in China.

Mr Shoebridge said the Covid-19 pandemic had exposed the world’s dependence on China for manufacturing goods such as personal protective equipment and chemicals used in medicines.

“You don’t want to find these little inputs that get in the way when you need to operate in times of crisis or even war,” he said.

“So things like safety goggles and gloves. We need alternatives to China as a supplier.”

Mr Shoebridge said China was “without a doubt” the biggest military threat to Australia, noting Beijing’s aggressive military expansion into the South Pacific.

The Albanese government is pushing for China to end coercive trade sanctions on Australian products.

Chinese and Australian defence and foreign ministers have resumed communications since the Albanese government took office following a freeze under the previous government.

Australia’s Foreign Affairs Minister Penny Wong earlier this month said Canberra and Beijing had taken the “first step towards stabilising the relationship” after she met with her Chinese counterpart on the sidelines of the G20 summit in Bali.

The Albanese government is pushing for China to end coercive trade sanctions on Australian products including coal.

Mr Shoebridge said on Tuesday said both sides were attempting to “change the tone of the relationship”.

“But China starts buying our coal, it isn’t because they love us. It’s because their economy is in trouble. So we’ve got to look a bit deeper,” he said.

“Beijing wants a big direct security role in our new region in the South Pacific. And frankly, that’s all bad news.”

A spokesman for the Department of Defence said approximately 70 per cent of the ADF’s current clothing budget was spent in Australia.

“ADF clothing, footwear and accessories are currently procured through a suite of Standing Offer Deeds that have been established over the last decade with Australian companies,” he said.

Originally published as Why Australia is paying China up to $14m every year