In his keynote address at the 20th International Institute for Strategic Studies (IISS) Shangri-La dialogue, Australian Prime Minister, Anthony Albanese told the gathering of top defense officials on Friday, June 2, 2023, that open channels of communication are critical for preserving peace, while also advocating effective deterrence.
Albanese, who has been expanding Australia’s military power in response to China’s growing military assertiveness in the South China Sea, the South Pacific and the East China Sea, disclosed that he has also been working to stabilize the country’s diplomatic relations with China.
“We recognize there are fundamental differences in our two nations’ systems of government, our values and our world views.
“But we begin from the principle that whatever the issue, whether we agree or disagree, it is always better and it is always more effective if we deal direct.”
Anthony Albanese
Both U.S. Secretary of Defense Lloyd Austin and China’s new defense minister, Gen. Li Shangfu, were in the audience as Albanese spoke.
Ahead of the conference, Li rejected a request from Austin to meet on the sidelines, but the two shook hands before sitting down at opposite sides of the same table just before Albanese’s address.

Australia is a stalwart American ally in the region, and Albanese stressed that while China’s “extraordinary economic transformation” has been a benefit to the entire region, China has also benefitted from “a regional architecture that facilitates free trade, encourages the sharing of knowledge, spurs innovation and builds people-to-people connections.”
“American leadership has been an indispensable part of this,” he said.
Albanese Expresses Need For “Guardrails” In U.S-China Relations

Also, the Australian Prime Minister averred that there was a need for “guardrails” in the relationship between the United States and China, to ensure that no “one nation imagines itself too big for the rules,” which he said is part of the reason he has found it necessary to boost Australia’s defense capabilities.
Beijing has voiced significant disapproval of Australia’s involvement in the so-called AUKUS partnership, which ties it with the US and UK to develop an Australian fleet of eight nuclear-powered submarines.
“Australia’s goal is not to prepare for war, but to prevent it through deterrence and reassurance and building resilience in the region, doing our part to fulfill the shared responsibility.
“All of us have to preserve peace and security and making it crystal clear that when it comes to any unilateral attempt to change the status quo by force in Taiwan, the South China Sea, the East China Sea or elsewhere, the risk of conflict will always far outweigh any potential reward.”
Anthony Albanese
After a meeting earlier in the day with Albanese, Singapore Deputy Prime Minister, Lawrence Wong said members of the Association of Southeast Asian Nations don’t want to have to choose between Washington or Beijing.
“No one wants to be in a position where we have to either contain China’s rise or limit America’s presence,” he said. “Any move in either direction will have few takers in the region because no one in ASEAN wants to see a new Cold War,” he added.
This year’s dialogue comes amid a wide range of issues, including the war in Ukraine and its regional implications, including China’s support for Russia, the ongoing conflict in Myanmar, and growing tensions between China and the U.S. and its allies over Beijing’s claim to the self-governing island of Taiwan.