China’s Ambassador to Australia, Xiao Qian, has issued a strong rebuke of NATO’s new military spending target, warning the Albanese government not to fall in line with what Beijing sees as a dangerous escalation of global militarisation.
In an opinion piece published in The Australian, Xiao denounced NATO’s decision — endorsed by all member states except Spain — to increase national defence and security spending to 5% of GDP by 2035.
“This rhetoric and behaviour is steeped in Cold War thinking, intentionally stoking division and fuelling a global arms race that threatens peace and stability worldwide,” Xiao wrote. “It deserves high vigilance.”
The statement comes amid mounting pressure from the United States for Australia to significantly increase its military budget. US Defence Secretary Pete Hegseth and White House spokesperson Karoline Leavitt have publicly called on Canberra to lift defence spending from its current 2% of GDP to 3.5%, in line with NATO’s new expectations.
Leavitt stated, “If our NATO allies in Europe can meet this commitment, we believe our Indo-Pacific allies should too.”
Such an increase would cost the Australian federal budget approximately $40 billion annually — a financial burden the Albanese government appears unwilling to shoulder. Canberra instead points to its existing pledge to lift defence spending to 2.4% by the mid-2030s, part of a longer-term strategic realignment.
China, however, maintains that its military actions — including naval exercises near Australia and growing presence in the South China Sea — are normal and defensive in nature. Despite US intelligence suggesting that President Xi Jinping has ordered China’s military to prepare for possible action against Taiwan by 2027, Xiao said Beijing remains committed to peace.
“China and Australia are friends, not adversaries. This should never have been in doubt,” the ambassador asserted. “We have always engaged in bilateral relations with patience and sincerity, and we hope Australia will act in the same spirit.”
The ambassador’s comments highlight the strategic crossroads facing Australia, caught between its close alliance with the United States and its deep economic ties to China. As regional security tensions rise, maintaining diplomatic balance will be one of Prime Minister Anthony Albanese’s greatest foreign policy tests.
