Defence Strategic Review: Beijing accuses Canberra of hyping ‘China threat arguments’ to increase military budget

Canberra’s revamped defence strategy is merely an ‘excuse’ to increase the military budget, China says.

After Anthony Albanese released the defence review, China said: ‘We hope that some countries will not use China as an excuse to expand their military power.’ Picture: Martin Ollman

Beijing has accused Australia of hyping “Chinese threat arguments” as an “excuse” to expand its military power.

In the first response to the Albanese government’s Defence Strategic Review, Beijing said China had always pursued a purely “defensive” national defence policy.

“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 on Monday night.

“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 Albanese government’s new defence blueprint singled out China’s fast-paced military build-up as the main driver for the rethink.

“This build-up is occurring without transparency or reassurance to the Indo-Pacific region of China’s strategic intent,” the review said.

In March, China announced a more than 7 per cent increase in its military spending to $330bn, towering over its neighbours, though still significantly lagging the US. Analysts estimate the true size of China’s military spending is larger than the official number.

Defence Minister Richard Marles. Picture: Martin Ollman

Over the weekend, Beijing launched a blitz of domestic propaganda to celebrate the 74th anniversary of the People’s Liberation Army navy. State broadcaster CCTV said it was “certain” that Beijing would build more aircraft carriers and other next generation military hardware as Chinese analysts said the country was erecting a “maritime ‘Great Wall’” to safeguard its sovereignty.

The military propaganda drive came amid a chorus of international figures — including South Korean President Yoon Suk-yeol and EU foreign policy chief Josep Borrell — calling for Beijing to restrain from using force to change the status quo in the Taiwan Strait.

Richard Maude, a former senior Australian diplomat, said a “classic security dilemma” was playing out across the Indo-Pacific.

“And the problem, of course, is that China doesn’t accept that it is making other countries insecure, or that it bears any responsibility for this deteriorating strategic environment. It sees instead a US-led effort to contain and suppress China,” said Mr Maude, the executive director of policy at Asia Society Australia.

“That total mismatch of perception and outlook is undeniably raising risk in the region. And managing that has become the great challenge of our age.”

In March, in unusually direct comments, President Xi Jinping said “Western countries – led by the US – had implemented all-round containment, encirclement and suppression against us”.

The Albanese government has attempted to limit the extent of China’s upset about the defence review.

Chinese officials were briefed on the strategic review on Monday before it was released at noon (AEST).

During a press conference announcing the release of the document, neither Prime Minister Anthony Albanese nor Defence Minister Richard Marles once mentioned China.

In one of only three passages directly naming China, the review said “a stable relationship between Australia and China is in the interests of both countries and the broader region”.

“Australia will continue to co-operate with China where we can, disagree where we must, manage our differences wisely, and, above all else, engage in and vigorously pursue our own national interest,” it said.

This week the first industry-wide government-backed business delegation is visiting China since the Covid-19 pandemic began.

Chinese media has given widespread coverage of the trip, which is being led by Australia China Business Council president David Olsson.

Chen Hong, president of the Chinese Association of Australian Studies, said Canberra’s review had failed to grasp the “defensive, not offensive” nature of China’s military build-up.

“The report is largely shaped by Washington’s strategies rather than based upon an accurate assessment of Australia’s relationship with China,” Professor Chen told The Australian.

“China has never threatened Australia,” added the Shanghai-based director of the Australian Studies Centre at East China Normal University.

Professor Chen, the most prolific commentator about Australia in China’s state media, praised the Albanese government’s “toned-down” rhetoric, which he said was a huge improvement from the Morrison government.

 

He said, despite the fresh disagreement over the defence update, Australia and China’s trade relationship would improve, suggesting Beijing would end the black-listing of more of the Australian exports previously worth $20bn a year.

“Both sides have been starting a kind of quite regular and open and direct conversation channel,” he added.

Mr Maude said the defence strategy “shouldn’t be a dramatic surprise to anyone, including Beijing” and it was unlikely to disturb the modest improvement in the bilateral relationship.

“I don’t think we’ll see any significant retreat from the gradual stabilisation,” he said.