Tag Archive for: Australia-China Relations

TikTok is snooping on users. Why don’t they seem to care?

Despite numerous scandals and calls for it to be banned, TikTok, the Chinese-owned app, continues to enjoy immense popularity in Australia.

ByteDance, the Beijing-based company that owns and controls TikTok, is currently under investigation by the US Justice Department for spying on citizens, including journalists. In September last year, European Union regulators fined TikTok €345 million ($560m) for violating data protection laws. That was after the UK data watchdog levelled a £12.7m ($24m) fine at the company for illegally processing the data of 1.4 million children under 13 who were using its platform.

But if you thought any of these rolling controversies would put a dent in the app’s meteoric growth, think again. Some 8.5 million Australians are active on the platform every month. That’s almost 40% of the adult population.

The most recent controversy, as reported by The Sydney Morning Herald, revolves around the app employing a tracking tool, ‘TikTok Pixel’, that logs individuals’ web history and personal information, even when they did not provide consent. That too has prompted an investigation, this time by the Office of the Australian Information Commissioner.

TikTok Pixel is a piece of code that can be added to a website to track its visitors’ activity. This is not new. TikTok is just the latest tech company to provide this service in a market historically ruled by Meta and Google. Many websites engage at least one of these companies to leverage the data collected on their visitors for analysis and online advertising purposes.

Once a website owner signs up to one of these services, they define what of their visitors’ events they are interested in tracking—like adding a product to a shopping cart or adding payment information—and then embed the ad platform’s tracking code on their webpages. The ad platform then uses the information gathered to help the websites measure how well their ads work and better target ads at potential customers. If you’ve ever been hounded from site to site by advertising banners for that new vacuum cleaner model you briefly looked into the other day, you’ve experienced these trackers in action.

Sometimes this tracking can be convenient, say if you get served an ad for that vacuum cleaner at a heavily discounted price. But sometimes it can be creepy, especially if those pixels are placed on webpages about sensitive issues like mental health or domestic violence, for example. That’s why there is often a pop-up box that users can tick to give their consent for their information to be hoovered up. What the Herald discovered was that TikTok simply wasn’t bothering to wait for any consent to be given.

The controversy has generated a series of headlines and a number of companies from Beyond Blue to Bunnings have now stopped using TikTok Pixel. But it would be naive to expect TikTok’s ad business in Australia to collapse or for there to be any significant exodus of users from the platform.

Let’s face it when it comes to protecting our privacy online, most of us have thrown in the towel. Conditioned after decades of surveillance capitalism, the prevailing mindset of those who use the app seems to be: ‘We give our data to everyone else, so what difference does it make if we hand it over to TikTok too?’

It’s an understandable point of view. Most of us mindlessly agree to obscure terms of service daily. According to a 2008 Carnegie Mellon study, it would take the average American 25 days to read through all the privacy policies on every website they visit in a year. In another study, 98% of people were oblivious enough to click ‘I agree’ to privacy policies that disclosed sharing data with spy agencies and their employers, as well as payment for the service by way of signing away their first-born child. Thousands of others unwittingly signed away their ‘immortal soul’ to a gaming company one April Fool’s Day.

According to the Herald, TikTok wasn’t waiting for consent to be given before gathering data on web users. But given that most of us don’t read any of the related terms of service or privacy policies, or if we did, understand the dense legalese they deploy to outline how our data is exploited, no meaningful consent is ever likely to be given anyway. In this instance TikTok has, apparently, just not bothered with the façade of it all.

To be clear, if TikTok has done as the Herald describes, it is quite possibly illegal. But it’s also the type of ethical arbitrage that we’ve come to expect from big tech ‘disruptors’. From ByteDance’s point of view, if consumers are already so inured to the invasive practices of surveillance capitalism, what’s the harm in pushing a few more ethically dubious growth hacking tricks on them, as long as it maximises user acquisition? In the cut-throat competition for online attention, it’s almost always worth it to ask for forgiveness rather than permission.

Of course, there is a clear difference between Meta and Google’s data gathering operations and TikTok’s. The data TikTok gathers is accessible by their engineers in the People’s Republic of China, and can therefore easily be accessed by the PRC’s intelligence services. We might not mind being targeted by a vacuum cleaner brand, but we should be concerned when a one-party state can access a steady stream of our personal information.

Unfortunately, there are no easy answers. Even if, overnight, TikTok were forced to sell to a non-Chinese entity, we wouldn’t be truly solving the problem. The private data of Australian citizens would continue to be exfiltrated to China. We’ve seen this show before. In 2019, the Committee on Foreign Investment in the United States (CFIUS) forced a Chinese company, Beijing Kunlun Tech, to sell the gay-dating app Grindr, apparently on national security grounds. But as ASPI fellow Tom Uren has noted, that didn’t stop a small publication in the US from cross referencing Grindr user data it had acquired with the ‘pattern of life’ details of a Catholic priest to out him as gay a couple of years later. If a tiny Catholic publication can do that, you’d better believe China’s Ministry of State Security can too.

The fact is the way we deal with privacy is fundamentally broken. The business models that support the way we’ve become accustomed to use the internet have set a standard that makes it nearly impossible for consumers or governments to prevent data exfiltration to China and anywhere else, for that matter. When the regulators are too timid and the laws are not fit for purpose, it’s no wonder that consumers have become so apathetic.

Dealing with the national security risks posed by TikTok should be seen as an opportunity to create credible standards for all social media companies, no matter what their country of origin is. New laws should be designed to better safeguard individuals by restricting the collection, utilisation, and exportation of data, even when user ‘consent’ is granted. When it comes to national security, it shouldn’t fall on individuals to read the fine print.

Australia’s ‘softly, softly’ approach leaves China holding the big stick

As 2023 draws to a close, how should we assess progress on the government’s stated objective of ‘stabilisation’ in Australia–China relations?

On the face of it, the Australian government has built significant momentum this year towards restoring relations with China to an even keel. Prime Minister Anthony Albanese’s visit to Beijing, in early November, was the obvious high point, signalling a diplomatic thaw after a years-long freeze.

We’ve seen the release of Australian journalist Cheng Lei and the prospect of senior Chinese government officials visiting Australia in 2024. And the government can point to some success in the area in which it has put the most focus—securing the winding back of punitive trade barriers Beijing imposed against a range of Australian imports from mid-2020.

Stability is, of course, a laudable aim in the abstract. However, it is becoming increasing clear that the diplomatic rhetoric of stabilisation is wearing very thin (and in fact risks being distracting or self-delusory) when the underlying reality is so at odds—namely, Beijing’s ongoing destabilising behaviour and the fundamental differences in our strategic interests and political systems.

First and foremost, though least obvious, it encourages a damaging relationship-management mindset towards China. This is a common foreign policy trap that Beijing knows how to play to its advantage. Whenever China succeeds in elevating subjectively defined atmospherics as a basis for engagement, it undermines national-interest considerations if the other side accepts that differences should be minimised in order to establish goodwill or to maintain access.

Canberra needs to be careful not to overemphasise a relationship-building approach towards China, especially one centred on personal diplomacy between Albanese and Xi Jinping. In China, the PM said he regarded Xi as an ‘honest and straightforward’ interlocutor. Earlier, he said Xi ‘has never said anything to me that he has not done’. While Albanese may have made such comments in the context and spirit of relationship building, such descriptions are a shaky foundation for a substantive relationship.

The most obvious weakness with ‘stabilisation’ is that it runs directly counter to China’s deliberately destabilising behaviour in the East China Sea, Taiwan Strait and South China Sea and across its land borders with India and Bhutan. This has continued unabated since Labor came to power. In particular, the unsafe and unprofessional use of sonar by a Chinese warship, injuring Australian divers from HMAS Toowoomba right after the PM’s visit to China, dramatically undercut Canberra’s claim to have steadied bilateral relations. This incident forced an immediate course correction from the government, when Deputy Prime Minister Richard Marles condemned China’s ‘aggressive’ behaviour, in a media interview in India.

Beyond scripted joint statements issued at international summits, Australia’s ministerial line-up has appeared reluctant to call out China’s escalatory and intimidating behaviour towards the Philippines in recent months. Official statements of concern have seemingly been pushed down to the ambassadorial level.

Labelling Beijing’s actions as destabilising has arguably become harder for the government now that it has made ‘stabilisation’ the main metric of its China policy. That said, the most recent statement issued by the Department of Foreign Affairs and Trade in support of the Philippines marks a noticeable strengthening in our language, though it also highlights the limitations if not contradictions in the government’s stabilisation narrative. It is also abundantly clear that Australia continues to compete geopolitically and directly with China in the South Pacific and that this is driving Canberra’s statecraft in the subregion.

As I wrote in Australia’s security in China’s shadow, the paradigm undergirding the Australia–China relationship swung from economics to geopolitics around a decade ago and won’t swing back again quickly. A competitive, largely adversarial framing is more likely to define the future than one based on expanding cooperation.

Even in the economic arena, where the government’s diplomatic efforts have borne the most tangible fruit, stabilisation is falling short of Canberra’s expectations. Trade Minister Don Farrell has said he is ‘very confident’ that ‘by Christmas’ China will remove all remaining trade impediments against Australia, predicting that ‘we will have restored that stable relationship that we want with our largest trading partner’.

In fact, China is likely to defy Farrell’s optimism by keeping a range of trade restrictions in place. This is Beijing’s best tactic to ensure that Australia remains absorbed in the ‘low politics’ of bilateral trade, averse to the risks of spillover from more contentious policy differences. Businesses desperate to re-enter the Chinese market are likely to counsel caution against holding Beijing to account in their own cause of stabilisation, narrowly defined. China’s efforts to coerce Australia, including through economic means, haven’t ended—they are merely likely to take on new and more pernicious forms.

The other shortcoming of the stabilisation narrative is that it underplays the fact that the primary explanation for China’s fence-mending approach towards Canberra wasn’t Labor’s superior diplomacy in comparison with the previous Coalition government, but Beijing’s own realisation that its efforts to coerce Canberra into a more compliant mindset had failed.

While certain export industries have undeniably suffered as a result of China’s economic punishment campaign, Australia avoided macroeconomic damage because of the success of market diversification efforts, by both government and the business sector. In fact, the value of bilateral trade with China scaled new heights, because China continued to import the commodities it most needed from Australia, at prices inflated partly by its own politically motivated interference.

The most important revelation from China’s attempts to punish Australia economically was Australia’s underlying resilience as a competitive exporter in a global, rules-based trading system. In the final analysis, Australia’s macroeconomic stability was shown not to depend on the political health of its relationship with China.

Foreign Minister Penny Wong has recently transitioned to talking about Australia–China relations in terms of a need to ‘navigate our differences wisely’. As 2024 beckons, with all of its uncertainties, perhaps it’s time to quietly retire ‘stabilisation’ as a narrative that has served its limited purpose.

Stabilising relations with China mustn’t come at the expense of Australia’s security

Geopolitics is driving the dangerous strategic realities that Australia faces.

Beijing’s expansionist agenda is seen through its military aggression and commitment to undermining and changing international rules; Russia continues its revisionist war against Ukraine and a disruptive foreign policy; and we were reminded on 7 October that terrorism remains a top security threat with global implications.

However, the way Australia responds is within our control. Strong foreign and security policies, matched by serious defence investment, can ensure that potential adversaries looking to upend the status quo are deterred from dragging us into conflict.

There are two clear, related priorities. The first is to ensure that our foreign and defence policies are consistent and not at odds—the latter being a misstep that seems increasingly likely. The second priority is to invest properly in our defence force.

The defence and intelligence communities have made the hard-headed strategic assessment—articulated in the defence strategic review—that Beijing’s assertiveness is the greatest threat to our security and needs to be checked.

Our diplomacy, meanwhile, has been seeking ‘stabilisation’, in which we improve the atmospherics of the Australia–China relationship, reduce the focus on areas of disagreement and look for cooperation.

It’s a laudable goal, but is it sustainable or even consistent with our strategic assessments?

There are signs that stabilisation is coming at a cost to our strategy of seeking peace through strength and deterring Chinese aggression by having a highly capable defence force that we will deploy to support regional stability.

We have been too quiet about Chinese breaches of international rules, such as the bullying of Philippines vessels in the South China Sea. When the Chinese navy threatened the safety of Australian personnel, the government sent mixed signals as to how seriously it took the incident, with Defence Minister Richard Marles issuing a clear statement but Prime Minister Anthony Albanese unable to say whether he had raised the issue with Chinese President Xi Jinping.

That inconsistency removed the opportunity for what should have been a moment of Australian unity in the face of direct confrontation and injury to defence personnel.

There’s a growing risk of a defence and foreign policy gulf in which we pull our punches diplomatically while trying to show military credibility through initiatives such as AUKUS and defence exercises. Indeed, it’s why there’s an inherent weakness in democracies viewing foreign policy as soft power and defence policy as hard power with distinct roles, while our authoritarian rivals see them as fused.

Our ability to deter aggression will be undermined if our defence policy suggests we face serious threats while our diplomatic communications suggest we don’t.

Good diplomacy isn’t about denying differences but confronting them with clear affirmation of the legitimacy of Australia’s national interests, and our right to protect them. Otherwise, we risk playing into Beijing’s strategy of claiming that any response to Chinese provocation amounts to Australian escalation.

Of course, providing assurances is an important companion to deterrence. The West is justifiably assuring Beijing that we don’t seek regime change in China, Taiwanese full independence, or containment of Chinese growth where it is rule-abiding and peaceful.

Such messages help reduce mistrust, but assurances alone provide no deterrence, only incentivising more bad behaviour, which is why they must be accompanied with unequivocal signals that we will respond when Beijing breaches rules.

Failure to do so is the mistake that Europe made with Moscow, relying too heavily on assurance that NATO posed no threat to Russia, even while Vladimir Putin escalated aggression after 2008 and as Europe wallowed in complacency with meagre defence spending.

If we don’t project the strength to match the reality of the threats, we risk making the dangerous misjudgement that Winston Churchill implored England to reverse in 1932 when he said: ‘I cannot recall any time when the gap between the kind of words which statesmen used and what was actually happening in many countries was so great as it is now. The habit of saying smooth things and uttering pious platitudes and sentiments to gain applause, without relation to the underlying facts, is more pronounced now than it has ever been in my experience.’

The recent AUKUS defence ministers’ meeting showed progress in developing capability but also importantly expressed clear collective intent. The ministers’ statement that ‘AUKUS contributes to integrated deterrence by pursuing layered and asymmetric capabilities’ sent a clear signal to Beijing.

These signals can’t be limited to defence ministers—our long-term sovereignty requires deterrence to be a national priority, baked into our economic and industrial policies, bringing industry and the public along the journey and not merely surprised when crisis hits.

At the bottom line, the Albanese government needs to invest in defence in a way that matches the rhetoric that statements such as the DSR have expressed. Resourcing defence to match a damped-down foreign policy aim of stabilisation may result in short-term savings but will only lead to more spending down the track.

As ASPI’s budget analysis in May stated, the additional funding the government has promised beyond the forward estimates period needs to be brought forward. Budgets are tight, but we are not going to deter aggression unless we are prepared to put real money into defence capabilities.

It would be wonderful if all states got along and if all conflict and unfair competition could be resolved by diplomatic niceties. History shows this is wishful thinking.

Diplomacy is vital but it is ineffective if viewed as the good cop to defence’s bad cop—a message to adversaries that we don’t have the willingness and competence to use our hard power.

Meanwhile, our own industry perceives a lack of seriousness and our public senses a lack of need and justification for investment. Indeed, it is defence investment that helps ensure diplomacy can focus on managing, not ignoring, tension.

It is the will to confront difficult realities and think through worst-case scenarios that provides the greatest chance of developing effective strategies to deter them, and to be best prepared if they do eventuate.

Evolving China-based cyberwarfare demands greater regional resilience

In a speech at this year’s Shangri-La Dialogue, hosted by the International Institute for Strategic Studies in Singapore, Australian Prime Minister Anthony Albanese set out a balanced approach to handling China’s aggressive regional expansion: ‘Australia’s goal is not to prepare for war,’ he said, ‘but to prevent it through deterrence and reassurance and building resilience in the region.’

He went on to say that Australia and its regional allies need to ‘make it crystal clear that when it comes to any unilateral attempt to change the status quo by force, be it in Taiwan, the South China Sea, the East China Sea or elsewhere, the risk of conflict will always far outweigh any potential reward’.

China has recently shown a greater willingness to test the boundaries of physical confrontation. In the cyber domain, however, it has long engaged in aggressive tactics, where the rewards significantly outweigh the potential risks. This is bad news for Australian government organisations, local companies and their counterparts across Southeast Asia, which are having to divert significant resources to protect themselves against evolving Chinese cyber espionage, intellectual property theft and other cyberattacks.

CrowdStrike Intelligence is highly confident that China-nexus adversaries will continue to target both Southeast Asia and Australia in the government, telecommunications, military and civil-society sectors in support of national intelligence-collection priorities. We also expect to see a ramping up of cyber espionage in the AUKUS area as Australia strengthens its defence ties with the US and UK.

Concern around China-based cyber activity has only grown. The extraordinary disclosure in May that VANGUARD PANDA (better known as Volt Typhoon), a China-sponsored adversary group, had been lying dormant in US critical infrastructure networks for at least months suggests persistent assertiveness from China-based cyber actors in support of China’s cyber goals.

To reference the prime minister’s assessment, building resilience and reassurance is vital to deterring such attacks. Understanding more about China-based cyber activities in the region is an important place to start.

CrowdStrike Intelligence has been tracking China-nexus cyber adversary groups, including state-sponsored and state-affiliated groups, for over a decade. Last year, intrusions in the Asia–Pacific region accounted for roughly two-thirds of all China-nexus intrusion activity. In comparison, European and North American targeting accounted for about a quarter of intrusion activity.

While nearly every industry in the Asia–Pacific region is targeted, certain sectors receive more attention. Government organisations are targeted across the region, likely as a standing intelligence-collection mission. Telecommunications and technology organisations also remain high-priority targets. Technology entities face ongoing economic espionage campaigns targeting research and development data, proprietary information and trade secrets. Telecommunications entities offer Chinese adversaries the capacity to amplify intelligence-collection or surveillance efforts via direct access to foreign telecommunications infrastructure.

Cyber activity also fits with Belt and Road Initiative priorities, under which China-nexus groups target energy, finance, health care and other sectors to advance Beijing’s goal of technological independence.

Threat actors targeting these sectors collect strategic intelligence, compromise intellectual property and conduct surveillance of groups of interest—all of which are key Chinese intelligence goals.

Intellectual property theft is a significant, long-term issue for governments in the Asia–Pacific region. However, governments can do only so much to protect against such attacks. As the ASPI Critical Technology Tracker demonstrates, China is gaining technological dominance in numerous technologies that could provide economic and military advantages.

But what role will cyberwarfare play if China does try unilaterally to change the status quo by force (to borrow the common terminology of the US and its partners)? Unsurprisingly, Taiwan has been subjected to an overwhelming number of intrusions originating from China—likely economic espionage but also supporting Beijing’s desire for unification with Taiwan.

China can draw on a large ecosystem of cyber skilled actors to support its aims while retaining a level of plausible deniability. CrowdStrike didn’t observe an increase in government-sponsored attacks against Taiwanese firms when US House Speaker Nancy Pelosi visited Taiwan in mid-2022, but we did see an increase in China-affiliated nationalist hacktivism, resulting in web defacements and multiple distributed denial-of-service, or DDoS, attacks.

However, the recent VANGUARD PANDA attack up-ended previous thinking about plausible deniability. China was discovered to have infiltrated the networks of US critical infrastructure organisations, as well as those in Pacific bases such as Guam. The VANGUARD PANDA threat actors used a technique called ‘living off the land’, whereby tools already in a compromised system are used to achieve objectives while appearing to be normal processes.

The VANGUARD PANDA breach may indicate new assertiveness from Chinese cyber operatives in the Pacific region. Whereas theft and compromise of intellectual property, espionage and destructive attacks are motivated by intelligence, technological and financial needs, VANGUARD PANDA had the potential to be activated at a critical future juncture, disrupting communications and influencing a potential future conflict in the South China Sea.

It’s rare that governments publicly attribute such attacks. The fact that the Australian Signals Directorate, and other agencies in the Five Eyes community, publicly attributed this attack to China shows the seriousness of the threat.

The scale and scope of China-nexus adversary activity in Southeast Asia demonstrates the region’s strategic importance to China. Beijing asserts territorial claims over large portions of the South China Sea and continues to pursue extensive economic and strategic interests in the region.

Building resilience against continued China-nexus attacks will require all government and non-government organisations across the region to put more emphasis on baseline protective capabilities and cyber hygiene, patching known vulnerabilities and training employees to ignore and report phishing attempts, particularly since these continue to fool even trained observers. As China builds its capacity to up-end the status quo, organisations in the Indo-Pacific must strengthen and harmonise their people, processes and technology to build regional resilience against ubiquitous cyber threats.

First, organisations should solve human problems with human solutions. Behind every cyberattack is a human seeking personal or national gain. To fight fire with fire, organisations need to understand that they are facing ongoing attacks. Organisations must incorporate threat intelligence, threat hunting and threat response experts to fight on these cyber front lines. Threat intelligence provides invaluable insights into the tactics, techniques and procedures of threat actors such as VANGUARD PANDA and the vulnerabilities they most often exploit. Knowing how adversaries think and operate is half the battle. Threat hunting and response experts provide the first line of defence against potential breaches, engaging in hand-to-hand-on-keyboard combat with adversaries to protect their organisations’ critical assets.

Second, organisations should perform how they practise. Once they’ve built or augmented their team with the proper players, the next step is to lay out a game plan to help the organisation prepare for a potential breach. Threat response teams, often from external providers, are essential in building incident response plans, conducting red/blue-teaming exercises and confirming regulatory compliance. This will ensure their organisation is well prepared to operate swiftly, smoothly and ultimately successfully when faced with a cyber threat.

Third, they should bring technology to a technology fight. The threat landscape is evolving so quickly that ‘good enough’ security is still never good enough. Organisations can no longer bury their heads in the sand and rely on signature-based antivirus and other basic solutions to keep them protected against sophisticated attacks. Business and technology decision-makers must prioritise artificial intelligence and machine-learning-based security as the baseline foundation, with capabilities such as XDR (extended detection and response), identity protection, cloud security and more, to stay one step ahead of even the most advanced adversary.

Fourth, it’s essential to follow the principle that ‘sharing is caring’. The war against cyber adversaries is a team effort, requiring both the public and private sectors. Organisations on both sides must adopt a ‘one team, one fight’ philosophy, sharing insights and telemetry across borders, and enabling day-to-day collaboration between government and non-government experts. Governments are well placed to leverage the extensive experience and knowledge that exist in the private sector.

Thankfully, these are all key considerations and issues covered in the government’s new cybersecurity strategy. The time is now for Australia’s cybersecurity capabilities to evolve to build the regional resilience required to meet the ever-growing threat from cyber adversaries.

Australia should be clear that ‘disagree where we must’ means disagreeing with Beijing on Taiwan

Prime Minister Anthony Albanese’s visit last week to the People’s Republic of China was a reminder that beyond the metrics of trade and the mechanics of statecraft, the Australia–China relationship carries deep meaning in Australia’s national life.

When Canberra established formal diplomatic relations with Beijing in 1972 amid the transformative politics of the period, Australia’s relationship with China became a metaphor for one version of a national story told as waking to a modern, independent, forward-looking Australia that could finally see its future in the region. It also defined relations with Britain and the US as the legacy of Australia’s colonial past.

As a metaphor for a modern Australia, the China relationship has animated national life for decades. It aligned well with the post–Cold War era of globalisation when trade and investment were driving Australian policymaking generally, reaching a highpoint in the boosterism of the 2010s. With the signing of the China–Australia Free Trade Agreement in 2014, Australia’s trade minister declared that China would secure the nation’s future for ‘50 to 100 years’. The metaphor also worked when China itself was relatively more liberal in the 2000s. It was easier for governments, businesses and public institutions in Australia to set aside the realities of China’s party-state system and make the case for a China future by focusing on the social, cultural and economic dynamism of China’s development.

Both the Chinese and Australian sides leaned heavily into that meaning to give salience to Albanese’s visit. It was framed around the 50th anniversary of Prime Minister Gough Whitlam’s visit in 1973 and even included a photo op at the Temple of Heaven to hark back to the iconic image of Whitlam leaning against the Whispering Wall.

But as the debate surrounding the visit has shown, the China metaphor has become a source of tension in the policy and politics of Australia’s responses to China as the Xi Jinping era has deepened.

It frames the securitisation of relations through issues such as foreign interference and the AUKUS agreement as retrograde rather than a response to Beijing’s hardening politics. It has radicalised public institutions as their reluctance to recognise the reassertion of the Chinese Communist Party’s totalitarianism is required to be ever more zealous. And its economic case has been hollowed out by Beijing’s trade sanctions and China’s own economic problems.

A national future that Australia might have imagined for itself with China has become divisive and disruptive as that future has taken the form of Xi’s vision.

In recognition of these issues, the Albanese government has adopted a formula to manage China relations, which is: ‘We will cooperate where we can, disagree where we must and engage in the national interest.’ This structures the relationship into a balance of different conceptual domains. It is stabilising because its recitation means neither one nor the other of ‘cooperation’ or ‘disagreement’ can come to define the relationship by itself, and it lands on the concept of the national interest, the value of which comes from what it is not, which is corporate interests in a commodity trade-dominated economy, so reasserting the importance of sovereignty and statehood.

But the formulation leaves unanswered the questions of what exactly Australia should be cooperating on and disagreeing about. It offers a useful policy typology but it is not a metaphor for Australia’s future with China that can propel policy, politics and national life. Without those answers, it risks becoming a way of avoiding disagreements and leaving Australia stuck in a pattern of reactive relationship management that makes it harder to chart a course for the nation.

In other words, by identifying the fundamental areas of disagreement, Australia can have a clearer sense of its national future in the Xi era.

Needless to say, the most fundamental area of disagreement is China’s and Australia’s relationships with Taiwan. As Beijing declares often, the status of Taiwan is an existential issue at the core of the ideology and purpose of the party-state system. It is the object of relentless military, political and diplomatic tactics to take China closer to what it calls ‘reunification’.

Canberra well understands the devastating effects a war against Taiwan would have on Australia’s economy and security. Australian governments have made numerous statements in recent years on the importance of peace across the Taiwan Strait and no unilateral change in the status quo.

But Taiwan has also always been the supplemental part of Australia’s China metaphor. Just as establishing relations with Beijing in 1972 became an emphatic statement about Australia’s future in the region, so too was the punitive severing of relations with Taipei. Since then, Australia–Taiwan ties have moved gradually forward in the absence of diplomatic recognition to become an important trade relationship with rich and meaningful cultural and community links. But that has occurred against the tide of an Australia–China relationship that was implicitly premised on the position that the Taiwanese people were on the wrong side of history.

The national-interest case for maintaining peace across the Taiwan Strait is self-evident. But to acknowledge that Australia could disagree with Beijing on its vision for Taiwan’s future as a province of the People’s Republic of China and see meaning for the Australia–Taiwan relationship itself recognises that treating China as a metaphor rather than a real place hasn’t offered a stable context to policy or an enduring way to tell Australia’s modern story.

Canberra could support Taiwan’s membership of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership or a free-trade agreement in Australia’s own trade interests. It could strengthen defence cooperation to be properly prepared for a crisis in the Taiwan Strait. But a first step would be for the government to acknowledge that it is Beijing that threatens Taiwan militarily and diplomatically and shift its phraseology to: ‘Australia opposes any changes by Beijing to the status quo in the Taiwan Strait.’ This is a statement of the kind of region in which Australia wants to into the future and an animating metaphor for the politics and policies needed to sustain it.

Albanese must not play Xi’s trade games

The well-worn observation that China is at once Australia’s largest trading partner and its primary security concern is often portrayed as a conundrum in which trade-offs may be needed.

Beijing’s best strategy these days is to play on this perceived tension and create the sense that if we can get the relationship ‘back on track’ and scrubbed of diplomatic controversies, Canberra will have an economic relationship Australians can take to the bank.

This is the context in which Prime Minister Anthony Albanese will arrive in Beijing this weekend. It will be a formidable diplomatic test, with much attention on whether he raises issues such as the almost five-year arbitrary detention of Australian writer Yang Hengjun, and the prospect of gains including further guarantees of unwinding trade sanctions.

Rather than make this a box-ticking exercise, Albanese needs to demonstrate a framing philosophy that spells out consistency across Australia’s positions, including that economic and security issues won’t be dealt with separately and that we will not return to the era of compromising our sovereignty in the interests of a prosperous relationship.

Such a message would serve as a deterrent: there is no point trying to bully us. This clarity will be vital given that Albanese will join his trade minister and a business delegation in Shanghai, so he must show that Australia hasn’t divorced economics from security.

There’s growing concern that the milder rhetoric and diplomacy with which the Albanese government has approached China is in danger of lurching into silence and inaction. Australian reticence on Beijing’s breaches in the South China Sea and the decisions to call off the World Trade Organization cases—enabling Beijing to escape international judgement on its coercive behaviour—were starting to suggest self-imposed censorship.

Australia cannot pick and choose the international rules it upholds, or when to hold others to account for international misconduct.

Meanwhile, Beijing will be looking to bed down Australian quiescence with a smiling public face conveying that the relationship is ‘back to normal’, by which it means Canberra subordinates its security interests to the economic relationship.

President Xi Jinping will continue to press for a pathway to accession to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership, a return to silence on the South China Sea, a muted Quad and a ceiling on the Five Eyes intelligence grouping, forestalling any ministerial-level meetings.

Ultimately, China wants to be able to say that Australia’s change of position has allowed this visit amid stabilising relations, as though we were rebellious teenagers who have come to our senses.

Xi will encourage Albanese and Australia to limit themselves to the hesitancy of a ‘middle power’ that lacks agency, when in fact Australia in 2023 is a regional power with global influence, responsibilities and values that include respect for sovereignty, international rules and human rights.

For a self-confident Australia, there is no sugar-coating many issues with Beijing, nor any getting around the fact that areas for cooperation are limited because we have fundamentally different views on the future of our region and world.

Knowing this, the Chinese government has been clearing the decks for the visit by releasing detained journalist Cheng Lei and flagging an end to unjustified tariffs on Australian wine.

But Australian positions have also been locked in, setting an important trajectory for Albanese. The prime minister’s visit to Washington last week ended our awkward silence on the South China Sea, yielding a joint statement that backed the Philippines by condemning China’s ‘dangerous’ actions around the Second Thomas Shoal.

And the head of the Australian Security and Intelligence Organisation, Mike Burgess, joined his Five Eyes counterparts last month in reminding everyone that Beijing’s malicious cyber activity is high on the list of topics that can’t be avoided.

On AUKUS, Albanese’s biggest challenge will be to persuade Xi that the pact is going to work. Given that the biggest determinant of AUKUS success is political will, the prime minister should leave no doubt that he and his British and American counterparts are committed.

Beijing fears the collective symbolism and substance of AUKUS. It doesn’t realistically expect Australia to pull out, but it will continue portraying it as a cost for which Canberra needs to atone through other concessions.

Australia should be prepared to make clear that it will actively employ its economic clout in the pursuit of greater strategic goals, if needed.

That doesn’t mean decoupling but, as the US has done with semiconductors, being prepared to cut China off from strategic resources such as critical minerals if those resources will power Beijing’s aggression.

Albanese needs to raise all these issues and be clear that they sit within an enduring world view in which international rules keep us safer and respect for all countries’ sovereignty is an essential element of the global system.

Pulling punches on international security in the hope of frictionless diplomacy and chasing short-term economic gain doesn’t lead to authoritarian reciprocity. They only show that aggression and coercion work.

ASPI’s critical tech tracker updates: biotechnology and the tight race towards the top

Biotechnology is one of the world’s biggest industries with a global market share estimated at over US$1.37 trillion (A$2.1tn) in 2022. The massive investment driven by the Covid-19 pandemic has helped boost the market to an estimated annual growth rate of around 14%, putting the expected value of the industry at US$2.44tn (A$3.8tn) by 2028.

ASPI’s Critical Technology Tracker update shows the intense competition between the United States and China in the sector which, along with artificial intelligence, is anticipated to deliver some of the most life-changing technologies over the coming decades.

The update adds four new technologies to the biotechnologies category: novel antibiotics and antivirals, genome and genetic sequencing and analysis, genetic engineering and nuclear medicine and radiotherapy. They join three existing fields in the tracker: vaccines and medical countermeasures, synthetic biology and biological manufacturing.

Our table collates the aggregated percentage of top 10% of highly cited papers in the different biotechnologies for different country groupings.

Of the four new fields, the US leads high-impact research in genetic engineering and nuclear medicine and radiotherapy, while China is ahead in genome and genetic sequencing and analysis, and novel antibiotics and antivirals. Among the previously reported biotech fields, China leads in biological manufacturing and synthetic biology and the US leads in vaccines and medical countermeasures.

In contrast to advanced sensors, the focus of our previous Strategist piece based on the tracker update, high-impact research in biotechnology is strong enough across likeminded nations that the leads established by China would be surmountable through joint efforts by the US and partners such as through the AUKUS agreement or with collaboration with Japan, South Korea and European nations in some combination.

The notable and worrying exception is synthetic biology, in which China produces 52.4% of high impact research and has nine of the top ten ranked institutions, giving the field a high monopoly risk rating. China’s strong performance in synthetic biology is almost twice the percentage of the AUKUS alliance combined with South Korea and Japan. This would be hard to beat even with a multilateral alliance including Europe. Irrespective of technology monopoly risks, the biotechnologies involving gene manipulation need international cooperation on the ethical issues and consensus on appropriate norms to minimise potential biohazard risks.

Synthetic biology is perhaps the most nascent of the biotechnologies and, as an emerging technology on par with quantum, is an area of interest for China with funded research at several institutions including CAS. The field involves redesigning living organisms into ones with new functions with applications in medicine, manufacturing and agriculture. The main distinction between synthetic biology and genome editing is that compared to genome editing, synthetic biology can involve the insertion of longer sections of DNA with the possibility of creating an entirely different organism like a recoded E. Coli.

Lab grown meat is another example of synthetic biology, as is engineering of stem cells into mini robots. Thus, synthetic biology, especially when engendering artificial lifeforms, must be regulated like genome editing and AI with multilateral expert input on where regulations would benefit from a US-Sino dialogue.

Biotechnology encompasses technologies that integrate biology and engineering into new products and processes leading to improved outcomes in health, manufacturing and society. The financial incentives to gain advantage in the sector are enormous given most countries spend more than 6% of the annual gross domestic product on healthcare, which accounts for more than 50% of the biotech industry.

Reflecting the importance governments are attributing to the industry, the United States, Australia, India and Japan are renewing their national biotechnology strategies.

China has listed biotechnology as one of its seven strategic emerging industries in 2010. In its 13th Five-Year plan (2016-2020), China’s Ministry of Science and Technology released a comprehensive biotechnology development plan.

The Covid-19 pandemic brought vaccines and medical countermeasures to the forefront. The US has an exceptionally strong lead in this technology with eight of the top institutions being US-based (with the University of California system as the top research institution).

The Critical Tech Tracker reveals the strong performance of the Middle Eastern countries of Iran, Egypt and Saudi Arabia in novel antibiotics and antivirals. The development of novel antibiotics and antivirals is important both in treating and suppressing infection and diseases. Antibiotics are used not only to treat infections but also to suppress secondary infection during surgeries, thus saving millions of lives. However, the overuse and misuse of antibiotics in the modern world have given rise to drug resistant infections that cannot be treated. Antibiotic resistance is a global threat not only to human health but also to food security, due to its widespread use in animal husbandry and fish farming. The World Health Organisation has called for action to formulate, strengthen and implement policies and procedures to tackle this crisis at all levels.

The University of California is the top institution in three of seven biotechnologies, with a strong lead in both genetic engineering and genome and genetic sequencing. The most significant breakthrough in the two interconnected technologies is the CRISPR gene editing technique pioneered at the University of California Berkeley by Jennifer Doudna and Emmanuelle Charpentier (2020 Nobel Prize winners in Chemistry). The CRISPR-Cas9 technique is set to revolutionise biomedicine, notably the treatment of genetic diseases, by deleting a section of DNA or turning off the gene causing the disease.

Genetic editing and engineering are biotechnologies fraught with ethical concerns, especially when applied to the human genome. There are high-level risks associated with gene editing. For example, the CRISPR-Cas9 technique is not error-proof as the process can insert or delete DNA letters at the points of insertion, potentially leading to a mixture of different versions of the edited cell. The possibility of developing a severely sick baby or a Frankenstein-like monster is no longer far-fetched.

A 2019 report on CRISPR in China has shown that the US is ahead of China by a fingernail on the number of CRISPR patent applications and China catching up on publication numbers and citations.

The tech tracker analysis shows immense competition between China and the US. For example, the US is ahead of China in genetic engineering and China is ahead in genome and genetic sequencing. China’s research in these biotechnologies has focused on agriculture, specifically transgenic crops and animal organs for human transplant. Unsurprisingly, the tech tracker data in these two biotechnologies shows the prominence of agricultural universities as well as biomedical institutes, hospitals and cancer treatment institutions. The established link between cancer and genes has made CRISPR an invaluable tool for cancer research and treatment.

Biological manufacturing, commonly known as biomanufacturing, is defined as processes that incorporate living cells in the commercial production of biomaterials and biomolecules (for use in medicine). China and the US are in first and second place respectively, while India is in third place and has two top-ranked institutions with the Indian Institute of Technology edging ahead of the Chinese Academy of Sciences (CAS), and the Indian NIT securing the third place. India has had a national biotechnology development strategy since 2000 with continuous renewal strategies since, and it aims to become a Global Biomanufacturing Hub by 2025. 

The technologies led by the US are not an immediate threat to Australia with its multilateral alliances in the Quad and AUKUS. The aggregated percentage for a Quad and South Korea alliance outranks China for novel antibiotics and antivirals and biomanufacturing. In the China led biotechnologies (other than synthetic biology), a Quad and South Korea alliance can reverse China’s dominance, with the AUKUS, Japan and South Korea alliance performing the best in genome and genetic sequencing. Our analysis also shows that in the aggregation of the seven biotechnologies, China (27.0%) has a slight lead over the US (25.2%) followed by the United Kingdom (4.2%), Germany (4.1%) and India (4.1%).

ASPI’s critical tech tracker updates: China’s lead in advanced sensors is overwhelming

China’s research in several advanced sensor technologies vital to military navigation and targeting is overwhelmingly ahead of the three AUKUS partners, the United States, United Kingdom and Australia.

Even if the three team up with likeminded Indo-Pacific countries Japan and South Korea, they do not match the Chinese output in high-impact research.

This is a key finding of ASPI’s latest update to its ground-breaking Critical Technology Tracker which compares levels of high-impact technological research worldwide. The update, released today, focuses on two key technology clusters in which breakthroughs will have major implications for future industrial, societal and military capabilities—advanced sensors and biotechnologies.

The tracker has now measured the amount of high-impact research by country across 64 technologies. China maintains its overall dominance, leading in 53 technologies against 11 for the US. This article focuses on advanced sensors. A second Strategist piece will tackle biotechnology.

High impact research is a key performance measure of scientific and technological capability. For example, the recent boom in Artificial Intelligence (AI) applications such as ChatGPT have grabbed global attention seemingly out of nowhere but are in fact based on decades of quiet research and advances across AI and computing.

Although North America has the largest share of the $200 billion remote sensor market with 41%, the tracker indicates China’s strong future trajectory through its huge share of papers in the top 10% of highly cited publications, especially in inertial navigation systems (44%), photonic sensors (43.7%), multispectral and hyperspectral imaging sensors (48.9%) and sonar sensors (49.4%).

The advanced sensor technologies included in the tracker are used for sensing, timing and navigation. They are comprised of devices with extremely sensitive detection capabilities for magnetic and gravitational fields, light and radio waves, and measuring time with atomic precision. The seven technologies are atomic clocks, inertial navigation systems, gravitational force sensors, magnetic field sensors, multispectral and hyperspectral imaging sensors, satellite positioning and navigation, and radar.

Three sensor technologies covered in previous releases are—sonar and acoustic sensors, photonic sensors and quantum sensors.

Our table shows our analysis of advanced sensor technologies and identifies the lead country with the highest percentage of papers in the top 10% of highly cited papers. The Critical Technology Tracker shows that China leads in seven of the 10 advanced sensor technologies—reflecting the massive effort and investment Beijing has made in these areas in recent years.

Four of these technologies have a high technology monopoly risk and can translate to future technological dominance. However, the stark nature of the challenge becomes clearer when we add the outputs of the AUKUS countries and other plausible partners.

Even if the three AUKUS partners join efforts, they still lag badly in six out of the seven technologies in which China leads, and they are barely neck-and-neck in the seventh, magnetic field sensors.

And if AUKUS were to expand and work with Japan and South Korea, they still wouldn’t catch up in those six fields. When Europe is added, the multinational grouping would creep ahead in radar and satellite positioning and navigation, but would still trail behind China in the other fields.

In a recent summit with the leaders of Japan and South Korea, US President Joe Biden reaffirmed US intentions to increase military and economic ties in a trilateral partnership. Japan, meanwhile, has expressed an interest in joining the non-submarine aspects of AUKUS technology collaboration—a gesture well received in the AUKUS capitals.

Each of these technologies is vital to our economies, our militaries, and our everyday lives. Global positioning systems (GPS), for example, are used by billions of people every day and are indispensable for defence forces for everything from situational awareness to guiding munitions. But their accuracy depends on precise timing using signals from atomic clocks on the ground and several GPS satellites in orbit.

Inertial navigation systems—which have long been an essential part of missile guidance—use a range of sensors to calculate the position of an object relative to its starting reference point without the need for continuous GPS references. This can become important if GPS networks are hit by jamming and spoofing attacks.

Likewise, ground-penetrating radar sensors—equally less reliant on GPS—can scan and map the ground with radio waves, which is useful for forensics, archeology and landmine detection.

Magnetic and gravitational field sensors have important applications in and beyond navigation. They can peer through dirt, rock and water to reveal information about the lay of the land. When coupled with a drone, these sensors provide valuable insights in land surveys and mineral exploration.

Gravitational field sensors can be used to monitor seismic and volcanic activity and detect hollow cavities and hydrocarbon reserves.

Quantum sensors can also be made to measure magnetic and gravitational fields but with higher sensitivity, better spatial resolution and a faster response rate.

Photonic sensors have applications in medicine (measuring blood saturation or glucose levels), environmental monitoring (measuring pressure and temperature), biochemical sensing (toxic chemicals) and autonomous systems (with laser imaging and detection).

Commercial satellite imaging is already highly capable, with a spatial resolution of a 25cm × 25cm pixel on earth, the size of a laptop. However, multispectral and hyperspectral imaging provides additional information by capturing specific colours, enabling the detection of chemical elements, for example, which is useful for agriculture, mineral prospecting and many other fields. It could, for instance, detect the spectral signature of chlorophyll—a key compound in green plants—across an area of land to counter ‘greenwashing’ by countries trying to inflate their carbon reduction measures. For example, earth images from Hisui, Japan’s hyperspectral satellite imager launched in October 2022, have the spectral resolution required to inform climate policy making.

Radar has an advantage over photonic sensors in that it can ‘see’ through clouds. However, radar’s spatial resolution is directly related to the ratio of the wavelength to the length of the antenna, where antenna size soon becomes impractical. The introduction of synthetic aperture radar (SAR) imaging eliminates this problem with a spatial resolution that depends on the size of the ‘aperture’. SAR was used widely by the military in the 1970s but is now a growing industry in the commercial satellite imaging sector with a market share of US$3.7 billion in 2022.

Seven of the 10 advanced sensor technologies are led by two China-based institutions, the Chinese Academy of Sciences (CAS) and Wuhan University. CAS is the world’s largest research organisation, with over 100 institutes and three universities under its umbrella. In our tech tracker, Wuhan University distinguishes itself as the top institution in inertial navigation systems, satellite positioning and navigation and multispectral and hyperspectral imaging. There are existing concerns around Wuhan University’s access to data from international affiliations like the international GNSS which could potentially support China’s People’s Liberation Army. In 2019, Wuhan University signed a memorandum of understanding with the United Nations Institute for Training and Research (UNITAR) for collaboration on AI research and innovation capacities for remote sensing through the UN Satellite Centre (UNOSAT). Recently, Wuhan University garnered attention in its successful experiment in giving AI complete control of its satellite in space temporarily, strengthening this collaboration. Global agencies like the UNITAR must ensure that the use of their satellite data is restricted to global applications and challenges.

The Critical Technology Tracker reveals that Beihang University in Beijing is the world’s top performing institution in magnetic field sensors and is significantly ahead of other institutions, producing 6.6% of the world’s top 10% most highly cited research papers in the field compared to the second and third ranked institutions, University of Nottingham in the UK (2%) and MIT in the US (1.9%) respectively.

While, overall, the US is the top performing country in gravitational field sensing, the Chinese Academy of Sciences leads the institutions list and is the only Chinese university in the top 10 with the University of California system and CALTECH claiming the second and fourth places respectively. Germany takes the third place in the country ranking with the Max Planck Institutes ranked third in gravitational field sensors. The UK features prominently with the University of Cambridge and University College London in fifth and sixth places.

 

Protecting Australia from a complex tangle of threats

Australia’s most senior military officer has warned that the nation faces complex and interwoven threats including high-end military capabilities, economic coercion, climate change and AI-driven dangers to democracy in a post-truth world.

In his address to the 2023 ASPI conference, Australian Defence Force Chief General Angus Campbell said the theme of disruption and deterrence was very timely. He said some nations, including Australia, had taken substantial steps to protect themselves against political warfare’s worst excesses, yet these pernicious and insidious threats persisted.

The defence strategic review, and the government’s response, titled National defence, were centred on deterrence and, in particular, a strategy of deterrence through denial. ‘National defence is a response to our deteriorating strategic environment.’

The environment, Campbell said, was made much more confusing for analysts and practitioners by at least five global, complex, non-linear, interdependent disruptions—strategic, economic, diplomatic, climatic and informatic—that lay at the heart of our understanding of the nature and utility of power.

‘It is imperative that we understand them, individually and in systemic combination, if we are to have the appropriate capability, credibility and modes of communication that are the classical foundation of stable deterrence,‘ Campbell said.

He drew as an example on the three-body problem, the complexity encountered by Isaac Newton when he tried to use his newly discovered mathematics to predict the motion of celestial bodies and realised that he couldn’t precisely predict the course of more than two at once.

‘In every direction I look we are confronted by serious, novel and consequential three-, four-, five-body problems, both within and across disruptions,’ Campbell said.

‘Within the realm of one disruption—the strategic—keeping the peace on the 38th parallel was once a bipolar, linear problem, very dangerous to be sure but limited. Over time it has grown from a peninsula problem to a North Asia problem to an intercontinental problem, directly involving four independent nuclear-armed states, our four largest trading partners, and the future of the entire region,’ he said.

‘And across disruptions, you only have to consider the economic, diplomatic, climatic and potentially strategic implications and interdependencies of the global clean-energy transition agenda. In a world characterised by disruption, each solution to a problem is at best an approximation, and each effort to resolve a problem likely affects all the other problems.’

The post–World War II international order was under great strain, he said, with some states preferring a rebalance in favour of what they might describe as the innate ‘privileges of power’.

‘We are in a time of rapid technological advances and a changing calculus between detecting and concealing, striking and shielding, human and machine, overt and covert, civil and military,’ Campbell said.

In military capability terms, advanced missile systems were the exemplar breakout technology of the day, he said, with ballistic, manoeuvring ballistic, cruise, hypersonic manoeuvring, hypersonic boost guide and fractional orbital bombardment all being fielded or explored in the Indo-Pacific. ‘As a nation whose largest trading partner is, as Deputy Prime Minister [Richard] Marles has said, also its “biggest security anxiety”, Australia finds itself in uncharted geostrategic territory.’

Economically, he said, strategic infrastructure investment races, coercive trade practices, debt-trap diplomacy, the prioritisation of supply-chain assurance and resilience, and trade diversification agendas were all aspects of an underlying breakdown in the globalisation consensus of the post–Cold War era. The lingering effects of the Covid-19 pandemic exacerbated these challenges.

‘The worst potential legacy of this disruption, the impoverishment of decoupling, is a real concern, hopefully to be avoided,’ Campbell said. But so too was rampant intellectual property theft and the undeclared application of dual-use technology.

‘Diplomatically, the effort to sustain, reinforce and evolve an international system under great strain, indeed in some cases attack, is a constant and demanding task without map or compass, albeit a clear-eyed sense of what we may lose if not successful. And as we have recently been reminded by China, maps matter,’ he said.

‘Climatically, our planet is clearly moving away from the system within which modern human endeavour has flourished. A hotter environment, with larger, more intense climate events, more often, will be the norm.

‘As National defence recognises, climate change is now a national security issue. It has immediate disaster mitigation and response challenges, along with food and water security implications and longer-term human migration impacts. This disruption is happening faster and less predictably than we all hoped.

‘Without the global momentum needed, we may all be humbled by a planet made angry by our collective neglect.’

Informationally, we are on the cusp of an extraordinary new era characterised by both knowledge and uncertainty, said Campbell. Information was being harnessed and weaponised to shape will, and through it the ability to deter.

‘The disruption resulting from the development, introduction, exploitation and use of big data, machine learning, autonomous systems and artificial intelligence is of particular interest and concern given its enormous potential for both good and ill; to inform, enhance, confuse, obscure, fabricate or delete the inputs to our perception of reality.

‘Like a silicon sword of Damocles hanging above our heads, a significant number of leading AI experts and tech entrepreneurs, including Yuval Noah Harari and Elon Musk, believe AI systems with human-competitive intelligence will shortly have the potential to pose profound risks to our system of government and the health of our body politic writ large.’

Campbell said that by feeding and amplifying untruths and fake news on social media using bots, troll farms and fake online personas, the Russians attacked American and British democracy, heightening distrust, sowing discord and undermining faith in key institutions.

Taken to their extremes, these types of operations could fracture and fragment entire societies so that they no longer possessed the collective will to resist an adversary’s intentions. ‘Their aim was to change not only what people think, but how they think and act.’

Increasingly sophisticated AI-enabled deep fakes further complicated our ability to perceive reality and know truth, Campbell said. Their ability to simulate the appearance, sound and movements of individuals posed obvious risks to the health of society and national security, especially when their targets were leading public officials. Such a deep fake of Ukraine’s President Volodymyr Zelensky was released in March 2022 in which Ukrainian troops were urged to lay down their arms in the face of Russia’s invasion.

Generative AI systems, such as ChatGPT, were of great potential benefit for modern society but also posed serious challenges, Campbell said. As these technologies matured, it could soon become impossible for the average person to distinguish fact from fiction.

China’s People’s Liberation Army had a well-developed doctrinal approach seeking to ‘win without fighting’ through its three-warfares strategy, encompassing psychological operations, media operations and legal operations. Informatic disruption was exponentially, instantaneously and globally enhancing the prevalence and effectiveness of a three-warfares approach, by any reasonably sophisticated practitioner.

That may bypass the need for a physical attack and strike directly at the psychological, changing perceptions of reality, with profound implications for deterrence.

These disruptions were now deeply enmeshed within, and served as a backdrop to, great-power competition. They challenged the theory and language, verbal and physical, of deterrence.

‘The purpose of deterrence is peace,’ Campbell said. ‘Conflict in our region would be catastrophic for all. That makes it essential to build an appropriate language of deterrence, which confidently, clearly and consistently communicates capability and credibility within, and despite, these disruptions.’

National defence directed that the Australian Defence Force urgently transition to a focused and integrated force capable of undertaking high-end warfighting across the spectrum of competition and conflict, and across all domains, Campbell said.

‘However, enhanced defence capability alone is insufficient. As a relatively modestly sized military, credible deterrence can only be delivered in partnership with those with whom we share common cause.’

Successful deterrence in this age of mass disruption would be a team effort requiring a deliberate, integrated and collective response. This demanded effective, nuanced and active diplomacy, Campbell said.

But it was important not to see diplomacy as the soft form of a securitised perspective of the world. ‘Rather, within its full breadth, diplomacy is an innate complement to harder power like military capability and economic strength.

‘And engaging partners on their terms, and on the issues that matter most to them, such as the Boe Declaration’s Pacific climate security agenda, is a critical facet of our diplomatic approach,’ Campbell said.

‘Diplomacy can prevent conflicts by conveying credibility. It can mitigate conflicts. It can provide partners in conflict. It can express and win wider global sympathy and support. It can mitigate the scale or escalation of a conflict. And hopefully it can bring conflict to an end.’

Australia must speak up against Beijing’s bullying of the Philippines

Last weekend, China’s coastguard and maritime militia carried out dangerous and aggressive manoeuvres against a small Philippines boat, blocking and blasting it with a powerful water cannon.

The vessel was trying to resupply a remote Philippines armed forces garrison on Second Thomas Shoal, in the South China Sea’s Spratly Islands, within the Philippines’ undisputed exclusive economic zone.

This brazen escalation by China is a test for the Australian government’s readiness to speak up in defence of the international rules-based order, and to show support for a key security partner in Southeast Asia­—a region Can­berra has identified as critical to Australia’s interests.

At the AUSMIN meeting last month in Brisbane between Australian and US defence and foreign ministers, the two nations committed to upholding a ‘global order based on international law’ and ‘fundamental principles of sovereignty and territorial integrity’.

They expressed their ‘strong opposition’ to destabilising actions in the South China Sea, including ‘the dangerous use of coast guard vessels and maritime militia’. They specifically denounced China’s excessive maritime claims as inconsistent with international law and reaffirmed their support for the landmark 2016 arbitral tribunal award in The Hague, which found in favour of the Philippines in its maritime legal dispute against China.

Washington reacted swiftly to the incident at Second Thomas Shoal, issuing a clear condemnation of China’s actions, simultaneously reassuring Manila and warning Beijing that any escalation to an armed attack on Philippines government vessels would be covered under the US–Philippines Mutual Defence Treaty. This was consistent with Defense Secretary Lloyd Austin’s June commitment to the 2016 arbitral tribunal ruling at the Shangri-La Dialogue when he stated: ‘It is ­legally binding, and it is final.’

By contrast, Canberra has so far refrained from issuing a statement from either the foreign affairs or defence portfolio. The Australian ambassador to Manila did tweet concern about ‘dangerous and destabilising’ actions but, unlike her US counterpart, did not name China.

AUSMIN communiqués are important, but they tend to be general and not widely read. The test was always going to be holding specific actions to account. The longer this official reticence about China is maintained, the more it calls into question Australia’s willingness to live up to its rhetoric on the South China Sea when the Philippines has unambiguously been on the receiving end of bullying and intimidation by Beijing.

It is to the government’s credit that bilateral relations with China have improved and tensions have reduced. But the formulation of ‘cooperating where we can and disagreeing where we must’ is not sustainable if the policy means trying to reduce tensions by ignoring differences. This doesn’t deter Beijing’s destabilising actions; it emboldens them.

If Australia doesn’t strongly call out such a provocative and destabilising breach of international law, one has to wonder what constitutes an issue on which we ‘must’ disagree with Beijing. Consistency is vital in international relations. In this case, it would both demonstrate Australia’s commitment to the rules-based order and signal to all countries, including China, what actions we consider unacceptable. The danger of choosing what ‘must’ be dealt with on an ad hoc basis, rather than by principle, is the same diplomatic error that led major European powers to think a default of silence and inconsistent engagement in the face of Russian aggression would eventually lead Russia’s Vladimir Putin back to the straight and narrow.

International rules either mean something or they don’t. In the valid attempt to reduce regional tensions, signing onto communiqués that few read while failing to speak up when it matters most risks reducing trust in both Australia and the multilateral system.

We stood up for the Philippines in 2016 when the tribunal ruled against Beijing, and we should do so now. This is a core issue for Manila. Less than a month ago, Philippines Foreign Secretary Enrique Manalo thanked the US and Australia for their support on the 2016 arbitral award. The Philippines has become one of Australia’s most important defence partners in the region. It was among the first to support AUKUS and has a bilateral visiting forces agreement enabling a high level of access, including Australian surveillance flights over the South China Sea. It is not in Canberra’s interests for Manila to doubt the strength of Australia’s commitment.

Failing to hold Beijing to account for maritime breaches would be another mistake in the mould of the misjudgement to end our World Trade Organization case against Beijing’s punitive tariffs on Australian barley. Abandoning the case spared China the indignity of another adverse international legal ruling that would have deterred Beijing and held it to account on economic coercion. It would also be a mistake to leave the condemnation to the US, as that serves Beijing’s strategic narrative that the issues at stake are only about great-power competition and US containment of China. We are all competing to shape the world in which we want to live—it is not a struggle limited to the US and China. Australia has a vital role by demonstrating that regional stability requires all nations to contribute.

Australia doesn’t have to fight every battle. But to win a competition, you have to play in it. The law-and-order principles set out in the AUSMIN communiqué go to the heart not just of our security and sovereignty, stretching from the seabed to space, but to the collective security of our region. If that isn’t worth standing up for, what is?

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