China Plans Naval Facility Only 200 Km From Australia

China apparently aims to build a wharf or a naval station in an island in the south of Papua New Guinea (PNG) to offset a plan by Australia and the United States to build a joint naval base on an island to the north of the country.

Triggering speculation China is using subterfuge to build a naval facility at Daru Island in the Coral Sea are fresh reports in Australian media a Chinese company named WYW Holding Ltd is again goading the PNG government into approving its plan first broached in April 2020 to build a new industrial island city called "New Daru City" with an investment of $30 billion.

At the time, the Papuan government replied by saying it wasn't considering this Chinese proposal, and had no plans of designating Daru Island a "business, commercial and industrial zone" as the Hong Kong-registered Chinese company proposed.

Daru Island

Australian Prime Minister Scott Morrison on Monday dismissed as “speculative” reports about New Daru City.

“I honestly think it’s just speculative,” said Morrison. “It’s just people flying some kites and I’m not going to overreact to the noise that is flying around out there.”

“I speak pretty regularly with the Prime Minister of Papua New Guinea (James Marape) and we have a very good relationship and he well understands our relationship and the importance of our other partners and I couldn’t see Papua New Guinea being terribly hasty on anything like that,” according to Morrison.

Papua New Guinea is the largest recipient of Australian foreign aid and is unlikely to anger Australia, which lies only 200 kilometers to the south, by hosting a PLAN naval facility.

Australian military analysts argue the Chinese proposal to build a city makes no economic sense given the remoteness of Daru and its population of only 20,000 people. Some, however, suspect China instead plans to build a wharf for a naval facility to be used later on by the People's Liberation Army Navy (PLAN).

The Chinese seem to have been encouraged to push the proposal for New Daru City after the PNG government in 2020 signed a memorandum of understanding with the Fujian Zhonghong Fishery Company. This Chinese firm intends to build a "comprehensive multi-functional fishery industrial park" on Daru Island.

The existence of a PLAN facility to the north of Australia will represent a dangerous strategic military threat to the country, which has taken the lead among Asian countries in confronting Chinese geopolitical and economic abuses.

Analysts also point to a project by the United States and Australia to redevelop the Lombrum Naval Base on Manus Island to the north of Papua New Guinea into a major naval base as a reason for China wanting a naval facility of its own in the area.

Australia and the PNG in 2018 entered into talks about providing port facilities to the Royal Australian Navy (RAN) and the U.S. Navy on Manus Island.

Australia and the U.S. proposed to expand Lombrum Naval Base, which has a deep-water port near important shipping lanes, to accommodate large RAN and U.S. Navy warships. Australia wants to bolster the military capabilities at Lombrum and three other ports to counter Chinese expansionism in Australasia and the neighboring Pacific Island nations.

RAN operated a naval base on Manus Island from the 1950s until it transferred the naval base to the Papua New Guinea Defense Force in 1974. (9 Feb. 2021)

Australia Modernizing Navy to Fend-Off China

Australia is prepared to spend upwards of US$770 million (A$1 billion) to develop indigenous long-range anti-ship missiles and lightweight torpedoes as it adds more military muscle to combat future aggression close to its shores by China.

The huge defense spending package announced Monday by the government of Prime Minister Scott Morrison will modernize the Royal Australian Navy (RAN) with the weapons it needs to project and maintain sea control against China's People's Liberation Army Navy (PLAN).

The outlay will go to providing RAN with long-range anti-ship missiles, extended range surface-to-air missiles, advanced lightweight torpedoes and maritime land-attack capabilities.

Australia wants its future anti-ship and surface-to-air missiles to be capable of finding and destroying PLAN warships at ranges in excess of 370 kilometers. The new maritime land strike missiles should be able to reach out to 1,500 km.

These weapons systems, which are currently in the United States' arsenal, will enhance RAN's ability to protect Australia's maritime resources and borders by threatening the destruction of PLAN warships at very long range.

Minister for Defense Linda Reynolds said the new weapons will arm the current and future RAN submarine and surface combatant fleets. The long-range weapons with give the Australian Defense Force (ADF) more options as it fights to protect Australia’s interests.

Launch of SM-6 missile

“These new capabilities will provide a strong, credible deterrent that will ensure stability and security in the region,” according to Reynolds. “The planned acquisitions –- when aligned with the ongoing state-of-the-art combat system development and national shipbuilding programs –- represent an investment of up to A$24 billion, which will build a lethal and highly responsive Navy for decades to come."

She said the weapons' acquisition project also seeks opportunities to broaden Australia’s weapons manufacturing base, thereby reinforcing the government’s long-term commitment to Australian industry and delivering sovereign industrial capabilities.

“This investment is part of the Morrison government’s A$183 billion Naval Shipbuilding Plan, which will see up to 23 classes of vessels built here in Australia, creating thousands of jobs and significant opportunities for Australian industry.”

The defense ministry will continue its long-term investment and key contribution to the Evolved SeaSparrow Block 2 missile program developed by the United States. It will also invest in developing the Standard Missile 2 Block IIIC surface-to-air missile and the Standard Missile 6 Block 1 to meet Australia’s long-range air defense requirements. (Jan. 26, 2021)