China, climate and conflict in the Indo-Pacific

This paper surveys the current reporting and analysis on climate and security to explore the implications that climate change may have for China’s ability to prosecute its security goals in the region’s three major hotspots: the SCS, Taiwan and the India–China border conflict. Those three hotspots all involve longstanding border and territorial disputes between China and other nations and may draw in various levels of US involvement should China continue to escalate tensions.

China, climate change and the energy transition

This report surveys China’s enormous energy transition to renewables. It begins by sketching the energy challenges China faces and its climate-change-related energy policies, in the context of the global geopolitics of the energy transformation. Next the report focuses on conventional energy sources (oil and natural gas), followed by electricity, and energy technologies. Although the report is intended primarily to survey developments to date, it concludes with some brief observations about the considerable energy challenges China faces in the years ahead.

Escalation risks in the Indo-Pacific: A review for practitioners

The outbreak of war in the Indo-Pacific is a real possibility. Increased competition, a growing trust deficit between global and regional powers and potential miscalculations heighten the risk. There needs to be a more engaged Australian discussion on conflict-escalation risks and how they might be managed.

Policymakers and leaders need to understand escalation risks as they manage Australia’s relationship with the US, China, North Korea and Australia’s key regional defence partners over coming decades. In rhetoric and in action, Australia also needs to be attentive to how the acquisition and employment of our own new capabilities—strike missiles, evolving cyber capabilities and nuclear-propelled submarines—affect strategic stability dynamics in a fast-changing world.

Multiple factors mean that there are all-too-imaginable possibilities for inadvertent and accidental escalation around flashpoints like the Korean peninsula, Taiwan, and in the East and South China Seas. Moreover, the maritime nature of the Western Pacific as a military theatre, combined with emerging technologies like hypersonics, means that decision makers could face very strong pressures toward pre-emption in a crisis. Put more simply, the fear-driven pressure to ‘shoot first’ could be very strong and very dangerous.

Managing these risks has clearly been made a priority by the Australian government – with senior ministers frequently talking about ‘guardrails’ – and the report suggests some options for doing so.

Be’er Sheva Dialogue 2022 – Proceedings and Outcomes

The Eighth annual Be’er Sheva Dialogue was held in Canberra on 21 November 2022. We kindly thank the Australia Israel Jewish Affairs Council (AIJAC), the Pratt Foundation and the Embassy of Israel in Australia for their support and partnership in the development of this year’s Dialogue.

The Dialogue is named in honour of the Battle of Beersheba (1917), with the 2022 Dialogue marking the 105th anniversary of the battle. Since its inception in 2015, the Dialogue has brought together defence officials, senior parliamentarians and analysts from both Australia and Israel to discuss areas of shared strategic interests and challenges, as well as the potential for collaboration.

Discussions during the Dialogue affirmed the significant potential for growth in the security relationship, especially military to military cooperation and sharing experiences and perspectives of defence industry. A recurring message during the Dialogue was that Israel’s experience with respect to sovereign development of defence and security capabilities and enhancement of weapon systems could be a valuable one for Australia to learn. This was highlighted by the Deputy Prime Minister and Defence Minister the Hon Richard Marles MP in opening the Dialogue:

Australia looks to Israel as an example of a nation which has been a leader in defence strategic thinking—be it in regard to its defence industry capabilities (and the innovation system, economy and workforce built around that) or in regard to its deep cultural relationship with science and technology. As we look forward, we need to think about how we can continue to deepen our bilateral relationship, which also extends to the relationship between our militaries and defence industries.

Richard Marles, Be'er Sheva 2023

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The Be’er Sheva Dialogue remains an invaluable forum for having these candid and constructive debates.

We look forward to the 2023 Be’er Sheva Dialogue in Israel.

State-sponsored economic cyber-espionage for commercial purposes: tackling an invisible but persistent risk to prosperity

As part of a multi-year capacity building project supporting governments in the Indo-Pacific with defending their economic against the risk of cyber-enabled theft of intellectual property, ASPI analysed public records to determine the effects, the actual scale, severity and spread of current incidents of cyberespionage affecting and targeting commercial entities.

In 2015, the leaders agreed that ‘no country should conduct or support ICT-enabled theft of intellectual property, including trade secrets or other confidential business information, with the intent of providing competitive advantages to companies or commercial sectors.’

Our analyses suggests that the threat of state-sponsored economic cyberespionage is more significant than ever, with countries industrialising their cyberespionage efforts to target commercial firms and universities at a grander scale; and more of these targeted industries and universities are based in emerging economies.

“Strategic competition has spilled into the economic and technological domains and states have become more comfortable and capable using offensive cyber capabilities. Our analysis shows that the state practice of economic cyber-espionage appears to have resurged to pre-2015 levels and tripled in raw numbers.”

In this light, we issued a Briefing Note on 15 November 2022 recommending that the G20 members recognise that state-sponsored ICT-enabled theft of IP remains a key concern for international cooperation and encouraging them to reaffirm their commitment made in 2015 to refrain from economic cyber-espionage for commercial purposes. 

This latest Policy Brief, State-sponsored economic cyber-espionage for commercial purposes: tackling an invisible but persistent risk to prosperity, further suggests that governments should raise awareness by better assessing and sharing information about the impact of IP theft on their nations’ economies in terms of financial costs, jobs and competitiveness. Cybersecurity and intelligence authorities should invest in better understanding the extent of state sponsored economic cyber-espionage on their territories.

On the international front, the G20 and relevant UN committees should continue addressing the issue and emphasising countries’ responsibilities not to allow the attacks to be launched from their territories. 

The G20 should encourage members to reaffirm their 2015 commitments and consider establishing a cross-sectoral working group to develop concrete guidance for the operationalisation and implementation of the 2015 agreement while assessing the scale and impact of cyber-enabled IP theft.

State sponsored economic cyberespionage Briefing note
Defending against cyber IP theft Project flyer

‘With a little help from my friends’: Capitalising on opportunity at AUSMIN 2022

The annual Australia-US Ministerial Consultations have been the primary forum for bilateral engagement since 1985. The Australian Minister for Defence and Minister for Foreign Affairs will meet with their American counterparts in Washington in 2022, in the 71st year of the alliance, and it’s arguably never been so important.

The Australian Strategic Policy Institute is proud to release ‘With a little help from my friends’: Capitalising on opportunity at AUSMIN 2022, a report featuring chapters from our defence, cyber and foreign policy experts to inform and guide the Australian approach to the 2022 AUSMIN consultations.

In this report, ASPI harnesses its broad and deep policy expertise to provide AUSMIN’s principals with tangible policy recommendations to take to the US. The following chapters describe Australia’s most pressing strategic challenges. The authors offer policy recommendations for enhancing Australian and US collaboration to promote security and economic prosperity.

The collection of essays covers topics and challenges that the US and Australia must tackle together: defence capability, foreign affairs, climate change, foreign interference, rare earths, cyber, technology, the Pacific, space, integrated deterrence and coercive diplomacy. In each instance, there are opportunities for concrete, practical policy steps to ensure cohesion and stability.”

Counterterrorism Yearbook 2022

The Road from 9/11

It’s been its been over two decades since the 9/11 attacks when two planes hit the World Trade Center, one hit the Pentagon and a fourth crashed in Pennsylvania. Close to 3,000 people died and many others were injured, and even more people were traumatised by the experience and the loss of loved ones. Today’s release of the Counterterrorism (CT) yearbook 2022 coincides with the anniversary of the November 2008 Mumbai terrorist attacks and the deaths of 174 people. These and other acts of terror have left an indelible mark and shaped the years that followed.

Australia’s overall security environment is increasingly challenging to navigate. Emerging threats such as information operation campaigns, cyberattacks and climate change are increasing the complexity of the world. In 2022, major geopolitical events including Russia’s war on Ukraine and China’s continuing coercive operations and aggression, occupied a significant space in national discourse. Foreign interference and espionage have continued to rise to the forefront of intelligence agencies priorities.

Yet, terrorism prevails as a significant security concern for Australia and the wider region. These continuing challenges mean that ASPI’s 6th edition of the Counterterrorism Yearbook is as important as ever.

ASPI’s Executive Director, Justin Bassi, notes in the preface of this 6th edition of the CT Yearbook, that ‘while terrorism is no longer assessed by ASIO to be our top security threat, it hasn’t disappeared and in fact continues to be one of the predominant security concerns for Australia and the region.’

The 2022 yearbook was co-edited by Katja Theodorakis, head of ASPI’s Counterterrorism, CVE and Resilience program and Gill Savage, an ASPI senior fellow, considers CT challenges through the lens of the world context, today’s challenges and explores wider policy considerations through a range of chapters from 16 expert authors. The yearbook includes chapters on trends in terrorism, precrime policing and extremism, radicalisation of teenagers, strategic competition and CT, public trust, multiculturalism and bioterrorism and resilience.

Theodorakis notes in her introduction that:

‘For most of the past two decades, terrorism and extremism were largely seen as an external issue brought to Australia by foreign problems. Even when talking about ‘homegrown jihadists’, extremist ideological motivations were generally ascribed to global terrorist sources in faraway places.’

The presence of motivated violent extremist groups continues and are increasingly accompanied by issue-specific radicalised individuals. A key aspect of the changing environment is the use of social media by extremist groups to tap into public discord arising from Covid lockdowns and vaccination mandates as well as violence driven by divisive political agendas in democratic countries such as the White House riots in 2020.

Today’s CT environment is an increasingly complex one, the impact of which hasn’t diminished. It represents a challenge that requires governments, community and academia to continue to work together.

North of 26 degrees south and the security of Australia: Views from The Strategist, Volume 6

The Northern Australia Strategic Policy Centre’s latest report, North of 26 degrees south and the security of Australia: views from The Strategist, Volume 6, is a series of articles published in The Strategist over the last six months, building on previous volumes by identifying critical intersections of national security, nation-building and Australia’s north.

This issue, like previous volumes, includes a wide range of articles sourced from a diverse pool of expert contributors writing on topics as varied as maritime law enforcement, equatorial space launch, renewable energy infrastructure, rare earths and critical minerals, agriculture, Industry 4.0, advanced manufacturing, fuel and water security, and defence force posturing. It also features a foreword by the Honourable Madeleine King MP, Minister for Northern Australia.

Minister King writes, “Northern Australia promises boundless opportunity and potential. It is the doorway to our region and key to our future prosperity.”

The 24 articles propose concrete, real-world actions for policy-makers to facilitate the development, prosperity and security of Australia’s north. The authors share a sense that those things that make the north unique – its vast space, low population density, specific geography, and harsh investment environment – are characteristics that can be leveraged, not disadvantages.

This is a link to the previous volume 5.

The 2022 US midterm elections and what they might mean for Australia

On 8 November, Americans will vote in midterm congressional elections to determine all 435 voting seats in the House of Representatives and one-third of the 100 seats in the Senate. This ASPI commentary outlines what the midterm election outcomes could mean for Australia’s strategic interests by examining the role of congressional committees in US foreign, security and defence policymaking. While most core elements of the Australia–US relationship are bipartisan and enduring, changes to the congressional committees can influence policy areas that overlap with or are vital to Australian interests. Even small changes in the way Congress works could determine how much priority Australian strategic interests receive. Canberra should therefore be highly attuned to the changes in committee structure and membership. 
 
Once the new Congress settles in, the Australian Government will have a brief window of opportunity to feed into and influence outcomes in US foreign, security and defence policymaking. After that point, campaigning will consume Congress, making it harder for Australian diplomats, politicians and other officials to be heard leading up to the 2024 US presidential election. AUSMIN in December 2022, the outcomes of the Defence Strategic Review and AUKUS pathway review (both expected March 2023) along with major Quad meetings held in the first half of 2023, all fall within this window and provide opportunities for senior Australian Government representatives visiting Washington to engage with both their Administration counterparts and with members of Congress including, for example, the strong friends of Australia in the AUKUS Working Group. 
 
This analysis of the midterms and their implications for Australia is informed by a series of meetings with congressional committee staff members (policy analysts and researchers). Those individuals serve both Democratic and Republican members of Congress and work in both the House of Representatives and the Senate.

Assessing the groundwork: Surveying the impacts of climate change in China

The immediate and unprecedented impacts of climate change are becoming increasingly apparent across China, as they are for many parts of the world. Since June 2022, China has been battered by record-breaking heatwaves, torrential downpours, flooding disasters, severe drought and intense forest fires.

In isolation, each of those climate hazards is a reminder of the vulnerability of human systems to environmental changes, but together they are a stark reminder that climate change presents a real and existential threat to prosperity and well-being of billions of people. 

Sea-level rise will undermine access to freshwater for China’s coastal cities and increase the likelihood of flooding in China’s highly urbanised delta regions. Droughts are projected to become more frequent, more extreme and longer lasting, juxtaposed with growingly intense downpours that will inundate non-coastal regions. Wildfires are also projected to increase in frequency and severity, especially in eastern China. China’s rivers, which have historically been critical to the county’s economic and political development, will experience multiple, overlapping climate (and non-climate) impacts.

In addition to these direct climate hazards, there will also be major disruptions to the various human systems that underpin China, such as China’s food and energy systems as are discussed in this report. These impacts deserve greater attention from policy analysts, particularly given that they’ll increasingly shape China’s economic, foreign and security policy choices in coming decades.

This report is an initial attempt to survey the literature on the impact that climate change will have on China. It concludes that relatively little attention has been paid to this important topic. This is a worrying conclusion, given China’s key role in international climate-change debates, immense importance in the global economy and major geostrategic relevance. As the severity of climate change impacts continue to amplify over the coming decades, the significance of this gap will only grow more concerning.