Trade and infrastructure threats: Beyond direct strikes, China can already block Australia's trade routes through Indonesian archipelago choke points, sever undersea cables, and conduct sophisticated cyber operations against Australian critical infrastructure .
The report warns that the threat will "grow over the next decade" as new systems enter service . The specific capabilities driving this escalation include:
Per US military assessments, the DF-27 has a range of 5,000 km to 8,000 km, allowing it to reach Australia from China directly. The report warns the threat will grow as the DF-27 "grows in service numbers" over the next decade .
The report notes speculation by the Pentagon that Beijing has developed a new ICBM armed with a non-nuclear warhead. This capability, along with the DF-27, will increase the direct strike threat as it enters service .
The report warns the threat would "dramatically escalate" if China fields a crewed or drone long-range bomber, or deploys bombers or missiles on Pacific islands close to Australia .
The Lowy Institute notes China is amassing long-range and hypersonic weapons as part of the growing strike capability .
While the report concentrates on the military capabilities of China, it expressly refrains from speculating on the likelihood of conflict or whether Beijing might resort to military action against Australia . China has publicly slammed the report, with state media describing it as a "grave strategic miscalculation"
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The assessment underscores a rapidly changing strategic landscape in the Indo-Pacific, where geographic distance no longer guarantees security from direct military threats.
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