China’s ambassador has called Julie Bishop’s latest remarks on China “ridiculous,” accusing Australia of having a Cold War “mindset” when it comes to the Chinese roll out of infrastructure  in the Pacific.

Earlier this week, Bishop suggested Beijing may be threatening the sovereignty of Pacific nations by building unnecessary infrastructure that leaves them with unpayable debt. This is affording  China considerable leverage in the region.  

Dr Malcolm Davis from the Australian Strategic Policy Institute says it’s good to see Australia finally waking up to China’s strategic interference.

“We’re recognising what China’s doing in the region. It’s called debt trap collection,” explains Davis.

“The debt is essentially no strings attached, until the point whereby you are required to pay back that investment. The Chinese then say ‘if you can’t repay it, we’ll take the assets for 99 years.’ “

“That’s the problem.”

There is a fear that if Pacific nations continue to default on these concessional loans, China will expand its military presence into the region, compromising Australia’s national security.

“The South Pacific is really important because if the Chinese get a military presence there, it fundamentally changes our security calculus. We’d have a Chinese military force about 1,500 nautical miles from Sydney.”

“Maybe our attention has sort of waned a bit in the South Pacific when it shouldn’t have, and so China has rushed in to fill that void.”

China&rsquo;s ambassador has called Julie Bishop&rsquo;s latest remarks on China &ldquo;ridiculous,&rdquo; accusing Australia of having a Cold War &ldquo;mindset&rdquo; when it comes to the Chinese roll out of infrastructure&nbsp;&nbsp;in the Pacific.
Earlier this week, Bishop suggested Beijing may be threatening the sovereignty of Pacific nations by building unnecessary infrastructure that leaves them with unpayable debt. This is affording&nbsp;&nbsp;China considerable leverage in the region.&nbsp;&nbsp;
Dr Malcolm Davis from the Australian Strategic Policy Institute says it&rsquo;s good to see Australia finally waking up to China&rsquo;s strategic interference.
&ldquo;We&rsquo;re recognising what China&rsquo;s doing in the region. It&rsquo;s called debt trap collection,&rdquo; explains Davis.
&ldquo;The debt is essentially no strings attached, until the point whereby you are required to pay back that investment. The Chinese then say &lsquo;if you can&rsquo;t repay it, we&rsquo;ll take the assets for 99 years.&rsquo; &ldquo;
&ldquo;That&rsquo;s the problem.&rdquo;
There is a fear that if Pacific nations continue to default on these concessional loans, China will expand its military presence into the region, compromising Australia&rsquo;s national security.
&ldquo;The South Pacific is really important because if the Chinese get a military presence there, it fundamentally changes our security calculus. We&rsquo;d have a Chinese military force about 1,500 nautical miles from Sydney.&rdquo;
&ldquo;Maybe our attention has sort of waned a bit in the South Pacific when it shouldn&rsquo;t have, and so China has rushed in to fill that void.&rdquo;

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