Australian Foreign Minister Penny Wong will deliver a speech on Thursday in the Philippines, where the 59th Asean foreign ministers' meeting is being held, warning China that Australia and neighboring nations will not be bullied by its provocative actions. The address comes after China's launch of a nuclear-capable submarine-launched missile in the South China Sea earlier in July and a recent incident involving the China Coast Guard.
China's Provocative Actions
Wong will say the missile test came with too little information and notification, and it occurs in the context of China's rapid military buildup, including its nuclear arsenal, without the transparency or reassurance the region expects. She will describe the test as provocative and destabilising. Wong met with China's Foreign Minister Wang Yi on the sidelines of Asean on Tuesday night AEST, their 12th meeting.
Earlier, Wong criticised China's conduct as destabilising and dangerous after the Philippine military accused the China Coast Guard of clubbing a Filipino sailor with a baton on Monday on a disputed shoal in the South China Sea. She will express concerns about China's vessels engaging in such conduct towards Philippine, Vietnamese, Malaysian, and Indonesian vessels.
Defence Agreement and Missile Test
China's long-range missile test in the South Pacific occurred just hours after Australia signed a defence agreement with Fiji, drawing widespread condemnation. Prime Minister Anthony Albanese expressed concern about the missile's long-range capabilities and the potential for considerable damage if weaponised.
Strait of Hormuz Warning
In Manila, Wong will also warn that the region will suffer if the Strait of Hormuz is weaponised and the US and Iran fail to maintain a ceasefire. Heavy strikes have resumed between the warring nations, with the US launching consecutive rounds on Iran to force the strait's reopening. Iran's president said the country is in a full-scale war after the US expanded its aerial campaign and Tehran struck Washington's Gulf allies. The Iran-allied Houthis in Yemen have announced a blockade of Saudi ports.
The renewed fighting has sent the international Brent crude benchmark surging by 23% over the past two weeks, nearing $US90 a barrel. This surge has pushed diesel above 220 cents per litre and petrol above 187 cents in some Australian cities. Commonwealth Bank chief economist Luke Yeaman predicts the federal government may have to restore the fuel excise discount back to 32 cents.
Impact on the Region
Wong will tell the audience that much of the region is fuel- and energy-dependent on the Strait of Hormuz, presenting a grave challenge. Across Southeast Asia, energy prices have spiked, costs for families and businesses increased, and ongoing pressure on food production continues. She will say that the Strait of Hormuz shows that people suffer when a strait is weaponised, and the costs of tolls on any chokepoint would not be solely economic. Our people depend on straits and sea lanes remaining open.
Wong will tell Asean nations that their assistance in plugging Australia's supply and trade gaps during the conflict is for the region's benefit, as what goes to Australia as fuel and fertiliser comes back to the region as food.
