AMD helps build Chinas warcats

The Chinese Navy is using Australian technology to upgrade its warships, a move which experts warn may be detrimental to Australia’s national security. Through a joint venture company based in China, an Australian business, AMD, has sold designs for the hull and propulsion system of high-speed missile-armed catamarans to the military in China.

A former senior Australian intelligence official is warning that although the situation is legal under Australian law, it is not an ideal situation for Australia’s national interest.

But the company involved believes there is no way to stop China applying civilian technology to its military.

AMD Marine Consulting is a very successful catamaran design business, with a joint venture company called Sea Bus International based in China. The Chinese Government has previously bought the company’s catamaran designs for civilian use, such as passenger ferries. The Chinese Navy liked the speed and stability of the catamaran’s hull and propulsion machinery so much that it bought the AMD design to use for its fleet.

Australian companies export about $600 million a year worth of military products and these are strictly monitored by the Defence Department and Customs, and the companies involved have to apply for licences. The restrictions also apply to civilian products with military applications.

When asked if he thought AMD’s business with the Chinese Navy was in Australia’s national interest, AMD?s technical director Allan Soars said: “It’s difficult to answer, as we’re talking about a hypothetical situation. Of course it would be unfortunate if these vessels were to be involved in a conflict with Australian forces. We didn’t design a weapon and sell the blueprints to China; we designed fast ferries and set up a joint venture design company in China to commercially exploit our designs, just as many Australian companies are selling products and technology into China.” He went on to say that “What is to stop China putting any product developed for commercial purposes into military use? Any number of Australian raw materials could be on these vessels, such as the steel for the shafting system, the copper in the wiring, even the lead in the bullets.

The only way to prevent the crossover of Australian commercial material into the Chinese military is to stop trading with China completely. We are constantly being told by experts that the more we trade with China, the less likely we are to face an armed conflict with them.