The strident declaration Albanese must make to China's Xi Jinping rather than his meaningless 'disagree where we must' waffle
And our Prime Minister is tying himself up in knots trying not to answer.
He doesn't want to say or do anything that might disturb his usual pandering and encouragement to Australian businesses to get even deeper into the China market.
But there's an enormous irony in what's going on here.
As the Prime Minister tours China with a high-powered business delegation and talks about growing our already unusually dependent trade relationship with China, back home the massive Talisman Sabre 2025 military exercise is happening.
About 30,000 Australian, US, Japanese, South Korean and other partner nations troops are exercising to demonstrate the power of collective defence, with two aircraft carriers, high tech aircraft and missile systems and large amphibious forces using Australian military bases scattered from Western Australia to Christmas Island and right down to NSW.
This demonstration of power and determination is mainly directed at Beijing, to deter Xi Jinping from sending his People's Liberation Army forces to invade Taiwan.
This message needs to be sent to Beijing because Xi has directed his military to make seizing Taiwan it's highest priority and his military has been following through on his order – ramping up its military preparations and presence around Taiwan over recent years.
2023 and 2024 were each record years for the level of Chinese military intimidation and presence around Taiwan, but 2025 has seen an even greater tempo of these preparations by Chinese forces.
Collective defence can only work if the militaries involved have enough capability to worry potential adversaries - and if the leaders of the nations involved sound sufficiently firm to be taken seriously.
No one can see Mr Albanese as serious or even engaged in the issues of deterring China from war through working closely with Australia's partners and allies.
His performance in avoiding any serious answers about regional security in the lead up to and during his visit underlines the problem.
Unfortunately, this isn't a new development – Mr Albanese's first term as prime minister is a tale of discounting security issues and underinvesting in our military while focusing himself on what he still calls 'stabilising' our relationship with China.
On security, Xi just isn't listening, sending the Chinese Navy on a trip around Australia that included live firing earlier in the year.
Mr Albanese has tried to deflect any question on regional security saying his government is 'investing in our capabilities and … investing in our relationships'.
On capabilities this just isn't true.
Whatever he claims on the Defence budget, we now know that the Navy doesn't even have enough funds to maintain and operate the small number of ships it still has, and this underfunding is almost certain to be true across the Army and Air Force.
As to 'investing in our relationships', Mr Albanese seems very interested and invested in one of his relationships – the one with Xi – but decidedly disinterested in other key partnerships, whether with Japan, South Korea or the US.
The PM is on an extraordinarily long six-day tour of China but he didn't organise even a day stopover in either of two nations that Australia has strong economic and security relationships with - South Korea and Japan - while in the neighbourhood.
And, of course, there's not the glimmer of even a pull aside meeting with US President Trump on his schedule, let alone a six-day US tour.
That sends a signal all by itself, because a leader's priorities are demonstrated by how and where they spend their time.
No wonder US officials are asking questions in public about our intentions as an ally, which were formerly discussed in detail and in private.
So what could Mr Albanese say that would be both truthful and diplomatic while he is in China talking up deepening our economic dependency on China?
He needs something other than waffle about hypotheticals and investing in relationships – or his favourite meaningless soundbite on anything about the government in Beijing 'we cooperate where we can, disagree where we must and engage always'.
He could say:
'Of course, deterring conflict over Taiwan – and any other conflict in our region - is important and Australia is a part of sensible collective defence planning for credible regional scenarios.'
'Like any other leader, I won't give cast iron guarantees about decisions on future situations and circumstances, but no one should doubt Australia's commitment to regional security.
'That commitment is why Australia is hosting our US ally and 16 other partner and allied militaries at exercise Talisman Sabre 2025 right now.'
The fact he won't or can't say this is no doubt what Washington is finding so odd and increasingly disturbing.
Michael Shoebridge is a SkyNews.com.au contributor and the founder and director of Strategic Analysis Australia
Hashtags

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles

Sydney Morning Herald
2 hours ago
- Sydney Morning Herald
Albanese says Taiwan ‘status quo' remains after questions on Chinese media report
'You're trying to quote a Chinese readout that I haven't seen,' Albanese said at a press conference on Wednesday in response to a question about his reported position. 'What we do is continue to support a one-China policy. We support the status quo. By definition. We don't support any unilateral action on Taiwan.' The status quo, in Australia's view, is that Taiwan should not declare independence unilaterally and China should not retake the island without negotiations. Later on Wednesday, Albanese travelled to Chengdu, a major city in Western China, that has a history of being more liberal than other parts of the country. There the prime minister met with local party officials and held a tennis event. On Thursday, Albanese will attend a medical technology industry lunch with dignitaries, including Australian Nobel laureate Professor Barry Marshall, and then tour a factory from Australian hearing implant company Cochlear. China is the world's largest manufacturer of high-tech devices, but research and technology ties between the country and the West have been strained by allegations of intellectual property theft and strategic tensions. In a speech to the lunch, Albanese will recall Bob Hawke's visit to Chengdu in 1986 when the Labor leader went to an Australian-owned circuit board factory. He will say that technology remains core to Australia's trade partnership with China and that both nations can improve by investing in research and manufacturing. 'This also depends on continuing to break down barriers by supporting the free and fair trade that enables Australian medtech companies to access the market here in China,' Albanese will say. While Albanese was touring Beijing this week, Russia's foreign minister, Sergey Lavrov, was also in the city. Asked whether Australia's strategy of engaging with China through trade despite security issues was repeating Europe's approach before Russia invaded Ukraine, Albanese said the situations were different. 'I don't think you can translate one thing across some other part of the world of which Australia is not a participant,' Albanese said. He argued that Australia's ties with China went beyond trade to dialogue at summits and personal links. Loading Xi and Russian President Vladimir Putin previously declared a 'no-limits' partnership between the nations, and China has been accused of assisting Russia's war effort in Ukraine. Chinese direct investment in Australia has slowed in recent years due to national security concerns about overseas influence in critical industries such as infrastructure and resources. China has been pushing to lower the barriers to entry mandated by Australia's Foreign Investment Review Board, which can block attempts at investment or reverse them, such as an order last year to push China-linked investors out of a critical minerals company in Western Australia. After the pair inspected Chinese troops dressed in immaculate dress uniforms, Li told a business roundtable attended by Albanese on Tuesday night that China was seeking fairness. Loading 'I trust that Australia will also treat Chinese enterprises fairly and also properly resolve the issues [of] market access and review,' he said. According to figures from consultancy KPMG and the University of Sydney, Chinese investment in Australia increased from $US613 million in 2023 to $US862 million in 2024. That is still significantly lower than 2008, when it reached $US16.2 billion, or even as recently as 2017, when it was $US10 billion. Against a backdrop of US President Donald Trump's mercurial tariff policies, Li positioned China as a force of stability in an unstable world. 'We hope that you will embrace openness and co-operation, no matter how the world changes,' Li said. 'The development of all countries is faced with new challenges. Given such circumstances, China and Australia, as important trade partners, should strengthen dialogue and co-operation.' Treasurer Jim Chalmers was noncommittal when asked last week about China's wish to speed up foreign investment reviews.

Sydney Morning Herald
2 hours ago
- Sydney Morning Herald
Australians robbed of half a million dollars each: Henry
Working Australians had been robbed $500,000 since the turn of the century by the failure of the country to find ways to get businesses and people to work smarter, the former head of the federal Treasury has revealed, saying the situation will get worse without substantial reforms. Before the federal government's productivity roundtable next month, Ken Henry, who headed a review into the tax system under the Rudd government and was pivotal to the introduction of the GST under the Howard government, said the nation's children were being short-changed by a current generation afraid to make hard decisions. Henry, the chair of the Australian Climate and Biodiversity Foundation, used an address to the National Press Club to argue the nation's poor productivity performance would become worse if environmental laws were not overhauled to both reduce red tape and protect nature. As Treasury secretary, he oversaw the first intergenerational report, released by then-treasurer Peter Costello, in 2002. After a sharp lift in productivity through the 1990s, the report assumed it could continue to grow over the next 40 years at around 1.75 per cent annually. Instead, productivity has slowed both here and around the world. In Australia, it has averaged less than 1 per cent since the turn of the century and has been negative over the past two years. Henry said as wages usually grew in line with productivity, the drop in productivity over the past 23 years had resulted in smaller pay packets for ordinary workers. 'The average full-time Australian worker has been robbed of about $500,000 over the past 25 years because of our failure,' he said. 'When I hear people say, we cannot do this to enhance productivity, cannot do that because it will hurt somebody, I think – give me a break. Who are we talking about here?'

Sydney Morning Herald
2 hours ago
- Sydney Morning Herald
Why is bitcoin soaring? And is it time to invest?
Despite Nakamoto's original vision of bitcoin replacing cash, these days the cryptocurrency is much more akin to a digital version of gold, as the network is far too expensive and slow to be able to use it as a legitimate cash replacement. Indeed, central banks around the world have said cryptocurrencies are unfit for everyday use, with RBA governor Michele Bullock saying it has 'no role' in the Australian economy. Investors originally saw bitcoin as a 'safe haven' asset separated from the fluctuation of markets. However, recently, institutional investors have flocked to the asset class, with about 6 per cent of bitcoin being held in exchange-traded funds (ETFs). Why is it rallying? Bitcoin and other cryptocurrencies are notoriously volatile, with their valuation regularly dropping or rising by thousands of dollars in mere minutes. However, the recent rally has been more sustained, thanks largely to the influence of Trump. During his campaign, Trump made no secret of his support for cryptocurrencies, promising to make the US the 'crypto capital of the world'. Once elected, he then enacted several policies to promote crypto, including establishing a strategic bitcoin reserve within US Treasury, and holding a crypto summit at the White House. Loading He also released his own Trump-branded cryptocurrency, which has a market capitalisation of $US1.9 billion. Republicans are now attempting to pass three more crypto-friendly bills – The GENIUS Act, The Clarity Act and The Anti-CBDC Surveillance State Act – all of which will create a friendlier regulatory environment for crypto traders and companies, including clarifying when digital assets like crypto tokens are considered securities or commodities. Crypto advocates view these bills as the US government's effective endorsement of the sector and a further legitimisation of bitcoin, despite widespread crime in the industry and real-world use cases for cryptocurrencies still few and far between. How much has the price risen? After bitcoin's creation in 2008, you could buy one for just a few cents, with 10,000 bitcoin famously being used to buy two pizzas in early 2010. As of Wednesday afternoon, one bitcoin was worth about $185,000. Since Trump's election, the asset's price has risen by almost $80,000, or 76 per cent. Should you invest? Obviously, the best time to have bought bitcoin was 2009 – and even then, you would have needed to conveniently forget about it until now. But is it still worth buying even with its heady valuation? 'Yes, we think so,' says Justin Lin, investment strategist at ETF provider Global X. '2025 is shaping up to be a landmark year for bitcoin adoption. This year we've seen some serious signs that investors are starting to value the asset for its fundamental strengths rather simply speculating on its price. Loading 'We think bitcoin is on its way to becoming a portfolio staple across the world, and as adoption grows, price discovery will follow.' Global X believes bitcoin will reach a valuation of $US200,000 by midway through next year. Much of this, Lin says, will be driven by traditional investors through bitcoin ETFs, with the current crop of crypto investors mainly consisting of younger, tech-savvy investors. 'By our calculations, only about 20,000 Australians have invested in ASX-listed bitcoin ETFs. That's shockingly low compared to the US. We take it as a sign that our older investment community still has a lot of catching up to do,' he says. How can you invest? There are a number of online bitcoin exchanges that operate both internationally and in Australia. You can sign up to one and buy bitcoin or other crypto. Keep in mind you don't have to purchase a whole one – you can just buy a fraction of a coin. These exchanges allow you to buy, sell, and store your bitcoin, much like an online stockbroker such as CommSec. The bitcoin ETFs are becoming increasingly popular as a way for traditional investors to purchase the digital asset without having to make an exchange account, with the ETFs available to purchase the same way as any other ASX stock. However, chief executive of investment firm VanEck Asia Pacific Arian Neiron said Australian investors seem to be less willing to invest in crypto than their US counterparts. '[Australian] investors are more cautious about bitcoin exposure, particularly when there is price momentum based on sentiment,' he says.