Foreign Minister defends military spending amid ‘imminent’ China threat

Australia’s closest allies are boosting their defence budgets, but Canberra is bucking the trend despite warnings about a nuclear-armed rival in the region.

Australia’s chief diplomat has defended Labor’s hesitancy to join allies in ramping up defence spending, saying the Albanese government “will fund what is required” despite warnings of an “imminent” threat from China.

The Trump administration earlier this month called on Australia to hike the military budget to 3.5 per cent of GDP, after years of flatlining near 2 per cent.

Anthony Albanese and his ministers have pushed back, insisting Australia was pulling its weight on defence and that spending was a matter for Canberra, not Washington.

But many of Australia’s closest allies have committed to spending more on defence amid conflicts on multiple continents and an increasingly inward-looking US, making the Albanese government somewhat of an outlier.

Foreign Minister Penny Wong said on Sunday the Prime Minister’s position was “very clear”.

Foreign Minister Penny Wong has defended Labor’s hesitancy to join allies in ramping up defence spending. Picture: NewsWire / Martin Ollman

“We assess capability requirements and we make sure that they are funded appropriately,” Senator Wong told the ABC.

She was pressed on why the Albanese government took a different view to the likes of the UK, Germany and France, all of which have committed to spending at least 3 per cent of GDP on defence.

“Because we will fund what is required,” Senator Wong said, repeating that the Australian Defence Force would be funded “by assessing capability and ensuring that we provide for the capability that is required”.

US Defence Secretary Pete Hegseth raised Australia’s defence budget with Deputy Prime Minister Richard Marles on the sidelines of the Shangri La Dialogue.

Mr Hegseth used his speech at the security conference to warn that China could invade the democratically self-governing island of Taiwan as early as 2027.

Such a move would deal a major blow to global supply of semiconductors – crucial components in modern tech – and massively disrupt vital trade routes.

“Let me be clear, any attempt by Communist China to conquer Taiwan by force would result in devastating consequences for the Indo-Pacific and the world,” Mr Hegseth said.

“There’s no reason to sugar-coat it. The threat China poses is real and it could be imminent.

“We hope not but certainly could be.”

Australia is being urged to boost its defence budget amid an ‘imminent’ threat from China. Picture: Vyacheslav Oseledko / AFP

In her Sunday comments, Senator Wong reiterated Australia’s bipartisan “support (for) the status quo” on Taiwan.

“We oppose any unilateral changes to the status quo and we urge these matters to be dealt with peacefully,” she said.

“China … has been exerting its influence, exerting its power in order to progress its interests in our region. That is very clear.

“I have spoken about that for many years. At times those interests will be different to Australia’s. We understand that, which is why we do many things.

“We engage bilaterally, but we also engage with partners including the United States because what Australia wants is a region where no country dominates and no country is dominated.

“That requires strategic balance, it requires engagement of the US, and it requires all countries of the region to play their part.”

Originally published as Foreign Minister defends military spending amid ‘imminent’ China threat