Beware of how China reacts to submarine deal, say defence experts

A leading security analyst has warned Australia’s nuclear-powered submarine deal with the US and UK is “full of risks” linked to the rise of China.

Sep 16, 2021, updated May 22, 2025
Image: Thomas Haas/Unsplash
Image: Thomas Haas/Unsplash

The new AUKUS pact will pave the way for Australia to acquire nuclear technology for a fleet of submarines.

Australian National University defence and strategic studies analyst Hugh White said China retaliating to the agreement could not be ruled out.

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ā€œThat is a very big deal indeed, full of risks and certainly changing the way Australia approaches the region,ā€ he told ABC radio on Thursday.

Professor White said it would be seen as a further demonstration that Australia had sided with the US in the face of a rising China.

ā€œIt will further amplify the already very loud signals that are being sent that we are seeing a new Cold War in Asia,ā€ he said.

The trilateral pact would serve American interests by giving a key ally stronger submarine capacity in the Pacific, he added.

ā€œIn the escalating rivalry between America and China, we’re siding with the United States and we’re betting they are going to win this one,ā€ White said.

ā€œThe Chinese are making things very difficult for us.

ā€œBut the fact is, that when we look 10 or 20 years ahead, I don’t think we can assume the United States is going to succeed in pushing back effectively against China.ā€

The deal paves the way for Australia’s troubled $90 billion submarine deal with a French company to be scrapped.

White said describing the deal as dysfunctional was a mild assessment.

Australia will become the only non-nuclear armed country in the world with nuclear-powered submarines.

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White said the fact that the UK needed American permission to share the top-secret nuclear technology was behind the trilateral nature of the deal.

It showed how seriously America was taking the need to ā€œmuscle upā€ in the Asia-Pacific.

ā€œI don’t think there’d be any chance of the UK or US sharing nuclear sub propulsion technology if it were not for China,ā€ he said.

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ā€œIt’s a very significant enhancement, you might say escalation of the cooperation of between the three in response to the China threat.ā€

Australian Strategic Policy Institute executive director Peter Jennings said China’s bullying and coercion had led to the deal.

ā€œWe should call the first submarine in this new category the Xi Jinping (after China’s president) because no person is more responsible for Australia going down this track,ā€ he told the ABC.

Foreign affairs commentator Keith Suter said Prime Minister Scott Morrison had made one of the most significant international relations announcements in decades.

ā€œIt’s clearly part of America’s sort of ganging up against China, which will feed China’s paranoia,ā€ he told the Seven Network.

ā€œWhen the Chinese look out on the world, they are surrounded by countries that are antagonistic towards them. That is a problem.ā€

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