Defence Minister Peter Dutton says he wants nothing more than normalised relations with China but that Beijing will not change as it militarises the South China Sea and forms an "unbreakable bond" with Russia.
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Speaking at a National Press Club debate with opposition counterpart Brendan O'Connor on Thursday, the Defence Minister also claimed Labor in government would bring uncertainty to civilian and military personnel in Defence and could slash jobs if it governed in minority with the Greens.
Mr O'Connor rejected Mr Dutton's attacks on Labor's national security credentials, saying the Coalition had failed to deliver the defence hardware that Australia needed despite 10 years in government.
Mr Dutton warned the global security situation echoed the 1930s, and repeated his claim - first made on Anzac Day - that Australia must "prepare for war" to maintain peace.
Pressed on whether Beijing would shift its posture, Mr Dutton pointed to China's actions in the South China Sea and at the border with India.
"My assessment is no," he replied.
"It's deeply concerning, and it's heading in one direction. That's why we do need to be strong."
Mr Dutton insisted Australia's Chinese diaspora was a major success story.
He poured cold water on the prospects of the Australian government's relations with the Chinese Community Party thawing in the short or medium term.
"I want nothing more than a normalised relationship with China ... But the direction of the Chinese government at the moment, including in our own region, is alarming and we should be realistic about it," he said.
"We're not going to cede our democracy or we're not going to be in position where we don't question human rights abuses. We are a country that stand up for our values, and we're not going to deviate from that."
Mr Dutton said aggression could only be deterred from a position of strength, and said the invasion of Ukraine's showed direct military action could only be repelled by a direct military response.
"We know this and so do potential aggressors," he said.
"We live in times echoing the 1930s with belligerent autocrats seeking to once again use force to achieve political outcomes.
"If history has taught us anything, it is that when dictators are on the march, you can only preserve peace by preparing for war."
Mr O'Connor said the Coalition had failed to deliver on promises of military hardware, including submarines, had mishandled Australia's relationship with France, and abandoned the "strategic ambiguity" approach adopted by the United States towards a potential conflict in Taiwan.
"They've turned on its head the Teddy Roosevelt maximum 'talk softly, carry a big stick'. In fact, they shout from the rooftops but they don't deliver the stick needed and it won't be here until, it appears, 2040," he said.
A churn in defence ministers under the Coalition had led to inadequate oversight and focus on the defence portfolio, Mr O'Connor said.
Mr Dutton said the Coalition had lifted defence spending and claimed Labor would not lift expenditure. Mr O'Connor said Labor supported the defence budget.
The Defence Minister also said the Coalition would have "more to say" about the timeline for the delivery of Australia's new submarines later this year, if it was elected, and that they can be acquired sooner than had been projected by commentators.
He said over the forward estimates the government would commit more than 2 per cent of GDP to defence spending.
"My judgment is that we will need to commit more to defence into the future as well," Mr Dutton said.
He warned a Greens policy to cut defence spending could result in thousands of jobs being lost in defence and defence industry, including in Canberra, if Labor governed in minority with the party.
"It's the uncertainty that Labor brings, if they're elected on the 21st of May, but not just to the department and to people wearing the uniform, but also to the 100,000 people that now work within defence industry across the country," he said.