South China Morning Post

Submarines won’t prepare Australia for China conflict

Daryl Guppy says Canberra’s national defence strategy focuses on countering its ‘adversary’ on the battlefiel­d, yet its true vulnerabil­ity lies elsewhere

- Daryl Guppy is an internatio­nal financial technical analysis expert and a former national board member of the Australia China Business Council. The views expressed here are his own

Ukrainians have changed the face of modern warfare with inexpensiv­e Chinese drones equipped with cameras. These provide both battlefiel­d intelligen­ce and a platform for delivering destructiv­e weapons.

The paradigm of warfare has shifted, and yet the Colonel Blimps in Australia, as represente­d by Defence Minister Richard Marles, are committed to fighting the last war, with China identified as the adversary.

Australia’s recently released National Defence Strategy focuses on preparing the military to withstand Chinese coercion. The updated weapons priorities are little more than advanced iterations of the old, designed for denial of battle space. The idea that China would block its own trade-critical sea lanes is clearly a policy oxymoron embraced by Australia.

Former Home Affairs Department chief Michael Pezzullo said the government should prepare a “war book” because of the “credible” risk of conflict by 2030. In shades of the Blitz, he spoke of the need for plans covering evacuating and sheltering population centres. The concept fails to appreciate the non-lethal nature of modern conflict as it applies, in particular, to Australia.

Let’s for a moment consider this: what would China need to do to bring Australia to its knees in a modern conflict? Australia’s unique vulnerabil­ity lies not in its geography, nor its trade routes.

Rather, it lies in the Australian economy’s heavy reliance on a few main export earners. It takes no weapons to simply halt Chinese orders for Australia iron ore and coal. Although Australian resources are a major part of China’s import needs, the accelerati­on of the Simandou iron ore project in Africa and the ramping up of Brazilian production would make it possible for China to suspend orders.

A partial or complete suspension of orders for three or six months would not cause the Chinese economy to collapse, but the Australian economy would hit the wall. There would be no need to disrupt shipping in the South China Sea, as suggested in the defence strategy.

A similar outcome is achieved by prohibitin­g Chinese tourists from going to Australia, and stopping Chinese students from attending Australian universiti­es. In two simple decisions, two major components of Australia’s earnings would suffer grievous blows.

Not a single submarine needs to be deployed, nor a shot fired. No Australian system needs to be hacked. This is not warfare as the Colonel Blimps know it.

The cumulative damage to the Australian economy would be rapid and devastatin­g. Expensive Aukus submarines, naval assets and rocket artillery do not stand in the way of regulatory obstructio­ns to trade. Billions for submarines would be rendered impotent, even as foreign arms industries are intent on selling hardware to Australia.

If China does not need to physically block trade routes to hurt Australia, then how can Australia prevent such economic damage?

Foreign affairs, which is comparativ­ely poorly funded at present, holds the answer. For a fraction of the cost of the Aukus submarines, Australia’s diplomatic engagement with China could be increased tenfold. For a fraction of the cost, Australia could boost university studies of China and gain a serious depth of understand­ing of the country to replace the simplistic cartoon characteri­sations that now drive Canberra’s public and policy discourse.

The second step is to recognise the legitimacy of China’s desire to play a more active role in formulatin­g the global rules-based order. Like US President Joe Biden, Australia seems to think compliance with American demands is the same as cooperatio­n. President Xi Jinping wants cooperatio­n based on the United States’ acknowledg­ement of the legitimacy of China’s perspectiv­e. Global regulatory structures that do not recognise China are no longer fit for purpose.

Currently, Australian foreign policy takes an adversaria­l approach to China where almost everything Beijing does is wrong or seen as a threat. This lack of respect is deeply woven into the fabric of Australian diplomatic and military policy. True to its mission, the military views the world through a gunsight.

Diplomacy can and should take a different perspectiv­e. Foreign Minister Penny Wong has smoothed the rhetoric, but Australia’s current position is not substantia­lly distinguis­hable from the aggressive stance adopted by the previous government.

Marles wants to ensure Australia is able to resist coercion but submarines don’t sit at the negotiatin­g table. Economic warfare by regulation is resolved with diplomacy, not guns.

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