China's envoy urges Australia to resist US pressure on military spending

Michael Heath, Bloomberg News on Jun 29, 2025

By clicking submit, I authorize Arcamax and its affiliates to: (1) use, sell, and share my information for marketing purposes, including cross-context behavioral advertising, as described in our Privacy Policy , (2) add to information that I provide with other information like interests inferred from web page views, or data lawfully obtained from data brokers, such as past purchase or location data, or publicly available data, (3) contact me or enable others to contact me by email or other means with offers for different types of goods and services, and (4) retain my information while I am engaging with marketing messages that I receive and for a reasonable amount of time thereafter. I understand I can opt out at any time through an email that I receive, or by clicking here

China’s envoy to Canberra urged Australia not to be “incited” by NATO’s support for U.S. demands to sharply raise defense spending and instead cooperate with Beijing to resolve regional disputes.

Ambassador Xiao Qian, in an opinion article published in The Australian newspaper Monday, wrote that both Australia and China rely on the same trade routes and have a major stake in safeguarding maritime security. He emphasized their roles as key trade partners with “highly complementary” economies.

“Dramatically increasing military spending places a heavy fiscal burden on the countries involved, undermining their efforts to boost economies and improve livelihoods, and further straining a global economy already struggling with weak recovery,” Xiao said.

He added some countries at events such as the Group of Seven summit and the recent North Atlantic Treaty Organization meeting have “hyped up the so-called China threat narrative,” to increase defense spending “and even incited Australia to follow suit.”

Australia spends a little over 2% of its gross domestic product on defense and is under pressure from the U.S. to raise that to 3.5%. The center-left government has pushed back, pointing out it has already increased outlays.

At a higher level, Canberra is trying to balance the increasingly confrontational relationship between the U.S. and China, which are respectively Australia’s historic security ally and its biggest trading partner. Australia likely wants to avoid raising defense spending excessively and antagonizing Beijing.

“As I often hear from Australian friends, ‘we have hundreds of reasons to be friends, and none to be enemies’,” Xiao said.

NATO leaders last week agreed to increase defense spending to 5% of GDP and renewed their “ironclad commitment” to mutual security as they aim to push back against an increasingly belligerent Russia. The U.S. wants allies to take up more of the fiscal burden for their own defense so it can focus more heavily on China.

Australia’s Labor government has managed to rebuild ties with Beijing after they plunged into a deep freeze, which included punitive trade actions against some Australian goods in 2020. The fallout was triggered by the then center-right government calling for a probe into the origins of Covid-19.

“China and Australia are friends, not foes. This should never have been in question,” Xiao said. “China has been always developing bilateral friendship and co-operation with the utmost sincerity and patience, and we hope Australia will work with us in the same direction.”