The Great Power Struggle and Espionage: Distrust Between Australia and China?
China's efforts to expand its influence to the point where it could target even civilian areas confirm the threat perception underpinning AUKUS's security architecture.
A naval ship is seen through the Manila Bay, in Philippines, on April 08, 2025. The Philippines has been facing increasing maritime challenges in the West Philippine Sea and South China Sea, as Chinese Coast Guards and the People's Liberation Army have increased their presence in the contested waters. Allies such as Australia, United States and Japan have been increasing defense and maritime cooperation with Manila in the face of rising geopolitical tensions in the region. Photo by Anadolu Images.
R
elations between Australia and China have been shaped in recent years not only by commercial and diplomatic agendas but also by intelligence and security-based crises. Most recently, the espionage case that erupted in Canberra has once again brought the fragile balance between the two countries to the fore. The allegation that an individual accused of acting on behalf of the Public Security Bureau of China infiltrated the Guan Yin Citta Buddhist community has had a wide resonance in Australia, beyond state security, in terms of the fabric of society and multiculturalism. This incident is, in fact, a concrete manifestation of the ongoing ‘trust deficit’ in Australia-China relations.
Allegations of espionage and foreign interference have been an integral part of international relations, even during the Cold War. However, what we are witnessing today paints a different picture from classic intelligence struggles. It is no longer just state institutions that are targeted; religious communities, universities, research centers and technology companies are also becoming targets. This situation demonstrates that espionage is not merely a military or diplomatic threat, but also a multidimensional security issue that can infiltrate the most fundamental structures of society. The case in Australia is one of the most recent examples of this transformation.
The current crisis is not only a turning point in Australia-China bilateral relations but also critically important for understanding the new form that the global power struggle is taking in the Asia-Pacific. China’s rise poses a strategic challenge to the Western alliance led by the U.S., while Australia is forced to take the front line due to the responsibilities imposed by its geopolitical position. The AUKUS agreement, competition over rare earths, cyber security and social security debates are intertwined in this context. The recent espionage case uncovered in Canberra signals the displacement of a piece on this grand chessboard that may appear small but has far greater implications.
Background: Australia-China espionage tensions from past to present
To understand the background of the espionage crisis between Australia and China, one must first look at the legal and institutional framework developed by Canberra over the past decade. The ‘foreign interference’ legislation, which came into force in 2018, introduced stringent regulations aimed at preventing foreign states from covertly influencing Australia’s political processes, academia, media and civil society. These laws marked a turning point in the country’s security policy, covering not only espionage activities but also indirect influence attempts by foreign actors.
The case in question is the third major case opened under this framework. Previously, investigations had been conducted into the influence of Chinese intelligence in both government-linked circles and the media and business world. Each of these cases demonstrated Australia’s vulnerability to foreign interference and also shaped the direction of its national security strategy.
During this process, the Australian Security Intelligence Organization (ASIO) played a critical role. Since 2022, 24 large-scale espionage attempts have been thwarted. These activities are estimated to cost the country’s economy approximately 12.5 billion Australian dollars (approximately 8 billion U.S. dollars) annually. These espionage activities target rare earth elements, advanced technologies, scientific research projects and, in particular, defense initiatives under the AUKUS security agreement.
On the political front, although Prime Minister Anthony Albanese’s government demonstrated its willingness to soften relations with its official visit to China in July 2025, espionage crises are forcing the government to take a tougher stance. Canberra, which wishes to maintain economic cooperation with Beijing, is being forced to abandon its policy of ‘avoiding conflict’ when it comes to security and adopt a more robust and transparent stance.
Guan Yin Citta spy
The latest development to shake the Australian public began with the arrest of a Chinese-born woman living in Canberra. Authorities stated that the individual in question had infiltrated the Guan Yin Citta Buddhist community on behalf of the Chinese Public Security Bureau and gathered information about community members. This case was recorded as the first local espionage case in Australia targeting a religious or cultural community. The incident brought about a perception of threat not only to state secrets but also to the fabric of society.
The investigation was conducted as part of an operation called ‘Autumn Shield’. Searches of the suspect’s home uncovered luxury items (Hermès bags, Rolex watches, large amounts of cash) as well as a Chinese passport. The findings pointed to intelligence activities supported by financial incentives, as well as the existence of a potential escape plan. Details reflected in court documents suggested that the operation was not only symbolic but could also extend to a wide-ranging espionage network.
Another striking aspect of the case was that the allegations were directed not only at the government or strategic institutions, but also directly at the social structure of a religious community. Conducting espionage within civil society reveals a new area of vulnerability that challenges Australia’s cultural integration policies by undermining the social trust of immigrant minorities.
Although there has been no official response from the Beijing administration regarding this case, Foreign Ministry Spokesperson Guo Jiakun made a brief statement saying that they had ‘no information about the details of the case.’ Chinese officials had previously described similar incidents as ‘exaggerated accounts.’ This situation once again highlights the ongoing diplomatic tension between Australia’s security concerns and China’s international image management.
Beyond being a legal case, the Guan Yin Citta case has become a turning point that has brought suspicions about China, trade dependency and concerns about national sovereignty to the forefront of the Australian public’s attention. The increased sensitivity surrounding immigrant communities in particular indicates that the social and political repercussions of this incident will continue for some time.
The great power struggle
The Guan Yin Citta case should be viewed as part of a broader competition that directly concerns Australia’s geopolitical position. Particularly within the framework of the AUKUS alliance, Australia, alongside the United States and the United Kingdom, aims to counter China’s rise in the region. AUKUS’s agenda is not limited to submarine technologies; it also extends to areas such as artificial intelligence, quantum computing and cyber defense. In this context, every espionage incident serves as evidence reminding the Australian public and its allies of the rationale for the alliance. China’s efforts to expand its influence to the point where it could target even civilian areas confirm the threat perception underpinning AUKUS’s security architecture.
Another dimension of this context revolves around technology and rare earth elements. ASIO’s latest reports emphasize that China’s espionage activities target critical minerals, technologies for the energy transition, and defense research. Therefore, the issue goes beyond military competition and becomes a contest over who will control the global economic order and technological superiority. Australia’s potential in terms of rare earths directly intersects with Beijing’s energy and industrial policies.
However, the impact of these crises is not limited to the strategic level; it also brings the balance between security and freedom in democratic societies back to the agenda. While foreign interference laws strengthen national security, they can also heighten sensitivities among migrant communities and require more careful implementation of social cohesion policies. From the perspective of Australia’s liberal democratic identity, there is an increasingly difficult search for balance between ensuring security and preserving multiculturalism.
Finally, such cases reinforce the perception of China as an actor capable of influencing social structures, beyond being a military and economic rival. Thus, Australia’s geopolitical narrative is being reshaped around a multi-layered security concern. That is, a battle map expanding from submarines to data centers, from mines to religious communities.
A turning point in Australia’s security architecture
The Guan Yin Citta case emerged as a turning point in Australia’s security architecture, pointing to broader implications beyond a single court case. First, the incident demonstrated how delicate the ground is on which trust-building with migrant communities progresses in Australia. While espionage investigations aim to reduce the risk of foreign interference, they can produce outcomes that trigger xenophobia within society. This highlights the need for national security measures to be implemented within a transparent and inclusive framework.
Secondly, the functioning of the foreign interference laws enacted in 2018 has been brought back into focus with this case. While the law positions Australia as a leader among similar liberal democracies, the question of whether fundamental rights are protected in each case is also being debated in the public sphere. This makes the balance between the rule of law and security more visible.
Thirdly, Australia’s findings are linked not only to the national context but also to the need for international cooperation. The scale of espionage activities necessitates closer information sharing and early warning mechanisms with allied countries such as Canada and Japan.
Ultimately, this incident demonstrates that raising social awareness is an integral part of security strategy. Raising citizens’ awareness of cyber security and foreign interference methods strengthens not only the state’s but also society’s resilience.
In general terms, the Guan Yin Citta case has once again highlighted the ‘trust deficit’ in Australia-China relations. On a global scale, the fundamental finding for liberal democracies is this: the tension between security and freedom is being felt more acutely through incidents such as espionage.
(Originally published in Turkish by Kriter)
