Defence Strategic Review: China reacts to Aussie military review

The Chinese Foreign Ministry has delivered a pointed message for Australia and its allies in response to the Defence Strategic Review.

Beijing has accused Australia of making “groundless” claims of China threatening peace and stability in the Indo-Pacific to justify its own military power grab.

China claimed it only pursued a “defensive” national security policy in a scathing response to the federal government’s Defence Strategic Review on Monday night, which came after Chinese officials in Canberra received a briefing on the report.

“We are committed to maintaining peace and stability in the Asia-Pacific and the world, and do not pose a threat to any country,” Chinese Foreign Ministry spokeswoman Mao Ning said.

“We hope that some countries will not use China as an excuse to expand their military power, and do not hype groundless Chinese threat arguments.”

The declassified version of the report did not describe China as a military threat to Australia, but warned Beijing’s claim of sovereignty in the South China Sea “threatens the global rules-based order in the Indo-Pacific in a way that adversely impacts Australia’s national interests”.

Beijing’s immediate acceptance of the offer to receive information about the report was in stark contrast to its reaction to the AUKUS deal last month when the Chinese Government took several days to take up a briefing on the agreement.

More than 30 of Australia’s allies and regional partners were offered an overview of the DSR upon its release.

A government spokeswoman said both Defence Minister Richard Marles, International Development and the Pacific Minister and other government officials had “engaged comprehensively with our regional neighbours and key partners about of the release of the Defence Strategic Review”.

US Secretary of Defense Lloyd Austin welcomed the review, saying it was “the latest example of the pivotal role Australia plays in preserving a free and open Indo-Pacific, including through participation in AUKUS and the Quad”.

“The DSR demonstrates Australia’s commitment to being at the forefront of incorporating new capabilities for the Australian Defence Force to better enable Australia to meet regional and global challenges, as well as to our unbreakable alliance, which has never been stronger,” he said.

In addition to sparking international interest from a security perspective, the DSR has also garnered the close attention of major defence industry players in Germany and South Korea due to recommended cuts to major Army acquisitions they were in the running to secure contracts for.

Watch Jade Gailberger’s explainer video below on what it will cost:

It is understood officials in South Korea accepted the need for Australia’s review and are now taking time to go through the detail of the report released publicly.

The recommended reduction of the infantry fighting vehicles project to just one battalion down from three is expected to force South Korean defence company Hanwha and rival German manufacturer Rheinmetall to resubmit their competing bids for a contract previously estimated to be worth between $18-24 billion.

Hanwha has also been impacted by the recommendation to scrap a second order of its artillery systems, the self-propelled Howitzers, a first order of which worth $1 billion are currently being built in Geelong.

Prime Minister Anthony Albanese says the review will “ensure our readiness for future challenges”. Picture: NCA NewsWire / Martin Ollman

Following the announcement Anthony Albanese was asked if he had any communication from foreign governments about downsizing Defence projects already in the bidding process, but the Prime Minister did not give specific details.

“We’ve been very upfront about where decisions have been made about the Howitzers and the Land 400 program,” he said.

“We have are review … so that you do the analysis and then you make an announcement on the basis of it.

Mr Albanese said he would not pre-empt the review, which would report in the second half of the year and the results then made public.

HOW AUSTRALIA WILL EXPAND MILITARY AGAINST CHINA

Recruitment to the Australian Defence Force would be streamlined to get personnel “in days not months” under a shift to grow the military to its largest level since the Vietnam War.

And a Reservist force previously abolished by the John Howard government could be reformed to pad out the ranks.

It currently takes between 100 days and 300 days to recruit a single member to the ADF by which stage many potential recruits walk away and take other trades and jobs.

The Defence Strategic Review (DSR) found both the ADF and Australian Public Service workforces were understrength and new pay and service conditions were needed to compete in the labour market to recruit more.

Australia needs a “bold approach” to recruit and retain troops. Picture: Getty Images

An “innovative and bold approach to recruitment and retention” was urgently needed, the DSR concluded.

“Policy, process, risk assessment and approaches to recruitment must change to increase the speed of recruitment from application to enlistment and recruitment, recruitment time must be achieved in days not months”.

The ADF Reserve forces could be in for change too, with Defence ordered to look at innovative ways to adapt and reshape the role to better use the part-time force.

Defence was told to reconsider past programs including the Ready Reserve Scheme (RRS) which was created in 1991 but abolished in 1996 by the John Howard government due to cost constraints.

The RRS was established in Brisbane within the existing 6th Brigade with personnel performing 12 months full time service before returning to Reserve part time status for another four years.

Australia is moving to grow its military to its largest level since the Vietnam War. Picture: Defence Media.

Meanwhile, climate change is now recognised as a national security issue and was a challenge for the ADF.

But the DSR found defence was not structured or equipped to act as a domestic disaster recovery agency concurrent with its core functions.

State and local governments were called on to put in place plans resources and capabilities “to deal with all but the most extreme domestic disaster operation”.

It concluded defence had to be “the force of last resort” to deal with floods and fires.

AUSTRALIA NOT READY FOR CHINA

Australia must urgently overhaul its defence force to counter the rapid militarisation of China with experts warning it does not have the capability to combat high-level threats.

The landmark Defence Strategic Review conducted by former chief of defence Sir Angus Houston and former Labor defence minister Stephen Smith, released on Monday, is being touted as the most significant update to Australia’s posture in 35 years.

In a stark assessment of international stability, the pair say Australia cannot rely on “geography or warning time” to help it as it faces the “prospect of major conflict in the region that directly threatens our national interest”.

They say Australia’s alliance with the United States will remain central to Australia’s security and strategy, calling on defence to pursue greater technology collaboration and invest in partners in the Indo-Pacific.

“For the first time in 80 years, we must go back to fundamentals … as to how we seek to avoid the highest level of strategic risk we now face as a nation,” the report states.

“While there is only a remote possibility of any power contemplating invasion of our continent, the threat of the use of military force or coercion against Australia does not require invasion.

“Cyber warfare is not bound by geography. The rise of the ‘missile age’ in modern warfare, crystallised by the proliferation of long-range precision strike weapons, has radically reduced Australia’s geographic benefits, the comfort of distance and our qualitative regional capability edge.”

The 110-page declassified version of the Defence Strategic Review made a whopping 62 high-level recommendations - all which have been agreed to, or in principle.

Prime Minister Anthony Albanese said: “We support the strategic direction and key findings set out in the review, which will strengthen our national security and ensure our readiness for future challenges”.

He said the government’s response to the review sets out “a blueprint for Australia’s strategic policy, defence planning and resourcing over the coming decades”.

The review outlines five key roles for the defence force. They include: defending Australia and the region, deterring any adversary’s attempt to project power against Australia through its northern approaches, protecting Australia’s economic connection to the region and world, contributing to the collective security of the Indo-Pacific and maintenance of the rules based orders.

It also recommends upgrading Australia’s northern bases, more long-range strike capability, and developing Australia’s cyber and space capabilities.

Other recommendations include scrapping white papers in preference of a national defence strategy that will be delivered in 2024 and updated biennially, slashing three battalions of combat vehicles and a column of Howitzer cannons.

Defence Minister Richard Marles said there are “tough decisions” that need to be made.

Defence Minister Richard Marles said the review, and the government’s response, was about maintaining peace, security and prosperity in the region.

“There are a lot of tough decisions that need to be made, but in doing so, we are making them in the best interest of our Defence Force and our nation,” Mr Marles said.

“Work to implement the review starts today, ensuring out ADF and our defence personnel has the capability they need to keep Australians safe.”

He reinforced the importance of growing Australia’s defence industry and speeding up the acquisition of vital defence capabilities.

The government is expected to spend $19bn on the review over the forward, which includes $9bn on the AUKUS submarines.

Of that, $7.8bn of investments over the forwards will be reprioritised to meet our future needs.

Artist’s impression of the future SSN-AUKUS nuclear-powered submarine to be built in Australia using a hybrid UK and US design. Picture: Defence/Supplied

Mr Marles said the reprioritisation of the integrated investment plan to address the challenges raised in the review was a “significant endeavor” and vowed to work with defence and industry to address the “substantial implications”.

He said too much time had been wasted on acquiring some capabilities, adding the change in strategic circumstances meant the issues needed to be addressed urgently.

The government has already directed defence to begin implementing reforms to cut red tape, streamline important projects and low-complexity procurements, make faster decisions about projects, and consult with industry about practical solutions.

CHINA THREAT HIGHEST IN DECADES

China’s large-scale conventional and non-conventional build-up has raised the risk of “military escalation or miscalculation” to its highest level in decades, Defence analysts have warned.

According to a declassified version of the Defence Strategic Review, the change has been evolving since the 1980s but China had dramatically lifted the stakes to change the dynamics of the Indo-Pacific.

The “intensity” in competition between China and the United States has the potential to now “threaten our interests including the potential for conflict”.

The DSR outlines China’s military build-up, “without transparency or reassurance” is the largest and most ambitious of any country in the region since the end of World War 2 and its intent remained unclear.

“China’s assertion of sovereignty over the South China Sea threatens the global rules-based order in the Indo Pacific in a way that adversely impacts Australia’s national interests. China is also engaged in strategic competition in Australia’s near neighbourhood,” the report concludes.

Watch Charles Miranda’s explainer video below:

Australia still only faced “a remote possibility of an invasion of our continent” but the threat of military force or coercion against the country did not require invasion.

“More countries are able to project combat power across great ranges, including against our trade and supply routes which are vital for Australia’s economic prosperity,” it concludes.

Our geography was no longer a defence given the range of China’s modern missiles.

“Our alliance partner the United States is no longer the unipolar leader of the Indo-Pacific,” the DSR concludes.

“The region has seen the return of major power strategic competition, the intensity of which should be seen as a defining feature of our region and time.

“As a consequence, for the first time in 80 years we must go back to fundamentals, to take a first-principles approach as to how we manage and seek to avoid the highest level of strategic risk we now face as a nation: the prospect of major conflict in the region that directly threatens our national interest.”

The DSR states it was a “decisive period” for the Indo Pacific region and Australia had a reduced, but undefined, warning period to which to react.

Climate change also posed increased challenges and demands on ADF resources both at home in flood and fires and abroad with Pacific cyclones.