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Canberra sending a multibillion-dollar cyber signal to China

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CANBERRA (CU)_Over the past few weeks, a draft security agreement between China and the Solomon Islands was making headlines, setting off alarm bells in Australia, which has expressed concern over the potential for Chinese military vessels to be based in Australia’s neighbourhood. Accordingly, Canberra is stepping up its defence efforts, sending a multibillion-dollar cyber signal to Beijing.

The federal government of Australia recently unveiled a new spending package worth a whopping AU$10 billion (US$ 7.5 billion) for the Australian Signals Directorate (ASD), over a period of 10 years. This is a significant increase in funds allocated towards the Defense Department’s unit in charge of signals intelligence and cybersecurity, which would now enable the division to double in size and triple its offensive capabilities.   

The programme, dubbed REDSPICE — Resilience, Effects, Defense, Space, Intelligence, Cyber, Enablers – is believed to have been launched by Canberra with China at top of its mind. “It responds to the deteriorating strategic circumstances in our region, characterized by rapid military expansion, growing coercive behavior and increased cyber-attacks,” the ASD said in a statement. The announcement, which came less than two months ahead of Australia’s federal election, is also an indication of the message which Prime Minister Scott Morrison intends to send across to his own electorate. It is seen as an attempt by the Liberal leader to contrast the center-left Labor Party, which is often criticised for being weak on foreign policy particularly in its relations with the Chinese Communist Party. Canberra’s national-security posturing is also influenced by Russia’s growing aggression in Ukraine, with Treasurer Josh Frydenberg noting in his budget speech that “war rages in Europe”.

In terms of threats in cyberspace, Australian entities have increasingly become targets, mostly from overseas. Among some of the noteworthy attacks was a ransomware attack on electricity provider CS Energy by Chinese hackers, as well as a breach of logistics provide Toll Group allegedly initiated by a Russian group.

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