Australia will be closely monitoring a Chinese naval task group that was sailing almost 280 kilometres off Sydney in a projection of power, as experts warn the nation must invest in its maritime capabilities.
The Australian navy trailed the Chinese boats which have moved further south since they were spotted by the defence force operating to the northeast of Australia in the Coral Sea.
Defence Minister Richard Marles described the activity as "unusual" but not unprecedented, stressing the Chinese vessels were not a threat as their conduct was in accordance with international law.
"We are keeping close watch on them and we will be making sure that we watch every move," he told Sky News on Thursday.
"Early on here, I instructed that we needed to have assets, our own frigates and air assets."
Opposition home affairs spokesman James Paterson said "a false equivalence" could not be drawn with Australia operating in the South China Sea.
"Both are operating in international waters, and we would not seek to stop the Chinese navy operating in international waters," he told Sky News.
"But we're not engaging in unsafe or unprofessional conduct against the PLA- N (Chinese military) in our region as they have against us."
A Chinese fighter jet fired flares in front of a RAAF surveillance aircraft over the South China Sea last week.
The Albanese government raised its concerns with Beijing over the incident which risked the lives of Australian personnel.
But China has defended the behaviour and accused Australia of spreading "false narratives".
Australian National University expert associate Jennifer Parker said given the rapidly changing geo-strategic environment, the debate needed to avoid "catastrophising" situations.
"The message that we need to take away from this Chinese task group is that China has the largest navy in the world ... and this will become an increasing trend," she said.
"In the event of a crisis or conflict, they could and would threaten Australia's maritime trade.
"This should be a reminder of their capabilities, and for the need for Australia to invest in our maritime capabilities as an island trading nation."
