Stealth mission finally revealed: Chinese warships on baby milk raid

New pictures reveal what Chinese warships were really after in Sydney: baby formula.

Chinese personnel load boxes of baby milk on to a warship. Picture: Adam Yip

When three Chinese warships steamed into Sydney Harbour on Monday morning, the conspiracy theorists were thick on the ground.

A not-so-subtle show of power at the same time as Scott Morrison was flexing his regional muscle in the Solomon Islands? A pointed political statement on the eve of the 30th anniversary of the Tiananmen Square massacre? Or was it — as this exclusive picture taken by The Weekend Australian ­suggests — just a glorified dash to the supermarket to grab some milk to take home?

On Thursday, on the eve of the ships’ departure for China, People’s Liberation Army personnel were seen loading dozens of boxes full of A2 platinum and Aptamil formula on board.

Baby formula made in Australia, the US and Europe has been highly sought in China for the past decade. Demand has risen sharply in the wake of the melamine ­scandal in 2008 when the industrial chemical was found in locally made products, leading to the deaths of six children.

Distrust in the Chinese product even created an industry in Australia. Individuals or syndicated groups — known as daigou — sent commercial quantities of baby formula from Australian stores back to China, where they could sell it for almost double the retail price.

But the latest escalation of trade tensions between China and the US has led Chinese authorities to shift their focus to improving the quality of domestic formula production to wean the country off relying on US products. The move is expected to ­affect all foreign producers of formula popular in China. Australian producers A2 and Bellamy have seen their share ­prices fall 7.1 per cent and 8.9 per cent respectively since China’s National Development and Reform Commission released a ­report last week outlining the intention to increase China’s self-sufficiency on formula.

Despite this, buyer-behaviour is yet to shift. Most Australian ­supermarkets and pharmacies are still experiencing supply shortages. Coles and Woolworths are continuing their bans on the sale of more than two units of baby formula per customer, but the policy has been difficult to enforce.

The Australian revealed this week that the warships’ arrival was kept so secret, not even NSW Premier Gladys Berejiklian was told in advance. Their presence sparked controversy and alarm among analysts, despite the Prime Minister’s assurance it was a routine “reciprocal visit”.

Australian Strategic Policy ­Institute executive director Peter Jennings was scathing in his criticism of the Defence Department’s handling of the ships’ arrival.

“There’s been a pattern over the years where we only find out about senior (People’s Liberation Army) generals visiting after they’ve left,” he said.

In a scathing opinion article published in The Australian yesterday, former Coalition minister Concetta Fierravanti-Wells said the visit of the warships showed the government had adopted a “supine” approach to China by ­allowing Beijing to “dictate terms”.