Peter Dutton warns of an 'unprecedented' Chinese cyber onslaught and admits war with the communist superpower is possible

  • Defence Minister warns Chinese hackers could take out power in major city
  • Australia will ramp up its offensive cyber warfare capability to deter attacks
  • Peter Dutton to give speech at launch of new Australian Signals Directorate 
  • Plans are in the works to launch a 'Space Force' to guard Australian satellites 

Australia will ramp up its offensive cyber warfare capabilities to protect itself from being crippled by hostile foreign powers.

Peter Dutton warned China had the ability to launch an 'unprecedented digital onslaught' on vulnerable targets Down Under.

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The Defence Minister on Tuesday will outline how Australia plans to adapt to the threat of state-sponsored cyber attacks in a speech to mark the opening of the new Australian Signals Directorate headquarters in Canberra.

Mr Dutton will admit it is 'possible' an attack from Beijing's secret army of hackers could take out a major Australian city's entire power grid resulting in 'injuries, deaths and the loss of essential services'.

Australia is set to ramp up its offensive cyber warfare capabilities. Pictured: Australian military command centre
Pictured: Peter Dutton
Pictured: Xi Jinping

'Some may think such a scenario could not be possible – that you would only read about it in a dystopian novel or see it unfold in a disaster movie. They are wrong,' Mr Dutton will tell the room of spooks during his address.

Scott Morrison in June 2020, shocked the nation by outlining how a 'state-actor' had targeted banks, universities, hospitals, transport networks, electricity grids, and even the military, as part of a lengthy cyber-warfare campaign against Australia.

Although China was not named at the time, the Australian Government last year pointed the finger squarely at Beijing.

Insiders claimed the cyber attack was payback for Australia's decision to ban Chinese state firm Huawei from the national 5G network in 2018 over national security concerns.

To combat future attempts by foreign governments to infiltrate sensitive Australian institutions, more will be done to strengthen ASD's ability to return fire with their own cyber missiles.

'Australia is not an aggressor in cyberspace. But we are prepared to use it to deter aggression and to respond to serious cyber attacks,' Mr Dutton will say.

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'And we will continue to invest in Australia's asymmetric cyber capabilities – especially offensive cyber. Capabilities to hold a potential adversary's forces and infrastructure at risk from a greater distance.

Mr Dutton admits it's 'possible' an attack from Beijing's secret army of hackers could take out a major Australian city's entire power grid resulting in 'injuries, deaths and the loss of essential services'. Pictured: Liddell Power Station

CHINESE HACKERS COME WITHIN MINUTES OF SHUTTING DOWN POWER GRID TO THREE MILLION 

Chinese hackers came within minutes of shutting off power to three million Australian homes but were thwarted at the final hurdle.

The Communist superpower were suspected of launching a 'sustained' ransomware attack on CS Energy's two thermal coal plants in Queensland on November 27 - showing what Beijing could be capable of in a wartime scenario.

There were panic stations within the energy firm as employees began to lose access to their emails and other critical internal data.

Pictured: CS Energy's Kogan Creek Power Station

CS Energy quickly realised the cyber attackers were trying to bypass their internal corporate systems to access the generators that circulate 3,500MW of electricity into the grid.

A successful attack would knock out power to between 1.4 and 3 million homes with no way of knowing how long it might take to regain control of the generators.

IT specialists came up with a brilliant last-minute move to stop Beijing from gaining access, by separating the company's corporate and operational computer systems.

Once the network was essentially cut in half, hackers had no way of seizing control of the generators.

Sources with knowledge of the hack attempt said the cyber-attackers were less than 30 minutes away from shutting down power.

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'Capabilities which send a clear deterrent message to any adversary: That the cost they would incur in threatening our interests outweighs the benefits.'

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But boosting Australia's cyber warfare capacity is not just limited to the ground.

In a separate speech to the Royal Australian Air Force air and space power conference, Mr Dutton will announce Australia's plan to follow the US lead by launching a 'Space Force'.

The newest branch of the military will be known as the Defence Space Command and is set to focus on protecting critical Australian satellites.

Pictured: Australian military set up a mobile satellite dish

'It's a necessary endeavour with a view to protecting our national interests and our need for a Space Force in the future,' he will say.

'We know that some countries are developing capabilities to threaten or degrade space networks, to target satellites, and to destroy space systems.

'Countries that see space as a territory for their taking, rather than one to be shared.

'For any nation, losing access to space would have significant civil and military consequences. It is a domain which must be used to deter aggression, rather than become a new realm for conflict.'

Chinese soldiers ride in tanks as they pass in front of Tiananmen Square and the Forbidden City during a military parade on September 3, 2015 in Beijing, China

How China's feud with Australia has escalated over the past three years

2019: Australian intelligence services conclude that China was responsible for a cyber-attack on Australia's parliament and three largest political parties in the run-up to a May election.

April 2020: Australian PM Scott Morrison begins canvassing his fellow world leaders for an inquiry into the origins of the coronavirus pandemic. Britain and France are initially reluctant but more than 100 countries eventually back an investigation. 

April 15: Morrison is one of the few leaders to voice sympathy with Donald Trump's criticisms of the World Health Organization, which the US president accuses of bias towards China. 

April 21: China's embassy accuses Australian foreign minister Peter Dutton of 'ignorance and bigotry' and 'parroting what those Americans have asserted' after he called for China to be more transparent about the outbreak.  

April 23: Australia's agriculture minister David Littleproud calls for G20 nations to campaign against the 'wet markets' which are common in China and linked to the earliest coronavirus cases.  

April 26: Chinese ambassador Cheng Jingye hints at a boycott of Australian wine and beef and says tourists and students might avoid Australia 'while it's not so friendly to China'. Canberra dismisses the threat and warns Beijing against 'economic coercion'. 

May 11: China suspends beef imports from four of Australia's largest meat processors. These account for more than a third of Australia's $1.1billion beef exports to China. 

May 18: The World Health Organization backs a partial investigation into the pandemic, but China says it is a 'joke' for Australia to claim credit. The same day, China imposes an 80 per cent tariff on Australian barley. Australia says it may challenge this at the WTO. 

May 21: China announces new rules for iron ore imports which could allow Australian imports - usually worth $41billion per year - to be singled out for extra bureaucratic checks. 

June 5: Beijing warns tourists against travelling to Australia, alleging racism and violence against the Chinese in connection with Covid-19.  

June 9: China's Ministry of Education warns students to think carefully about studying in Australia, similarly citing alleged racist incidents.   

June 19: Australia says it is under cyber-attack from a foreign state which government sources say is believed to be China. The attack has been targeting industry, schools, hospitals and government officials, Morrison says.

July 9: Australia suspends extradition treaty with Hong Kong and offers to extend the visas of 10,000 Hong Kongers who are already in Australia over China's national security law which effectively bans protest.

August 18: China launches 12-month anti-dumping investigation into wines imported from Australia in a major threat to the $6billion industry. 

August 26: Prime Minster Scott Morrison announces he will legislate to stop states and territories signing deals with foreign powers that go against Australia's foreign policy. Analysts said it is aimed at China.

October 13: Trade Minister Simon Birmingham says he's investigating reports that Chinese customs officials have informally told state-owned steelmakers and power plants to stop Aussie coal, leaving it in ships off-shore.

November 2: Agriculture Minister David Littleproud reveals China is holding up Aussie lobster imports by checking them for minerals.

November 3: Barley, sugar, red wine, logs, coal, lobster and copper imports from Australia unofficially banned under a directive from the government, according to reports.

November 18: China releases bizarre dossier of 14 grievances with Australia. 

November 27: Australian coal exports to China have dropped 96 per cent in the first three weeks of November as 82 ships laden with 8.8million tonnes of coal are left floating off Chinese ports where they have been denied entry. 

November 28: Beijing imposed a 212 per cent tariff on Australia's $1.2 billion wine exports, claiming they were being 'dumped' or sold at below-cost. The claim is denied by both Australia and Chinese importers. 

November 30: Chinese foreign ministry spokesman Lijian Zhao posted a doctored image showing a grinning Australian soldier holding a knife to the throat of an Afghan child. The move outraged Australians. 

December 12: Australian coal is added to a Chinese blacklist.

December 24: China suspends imports of Australian timber from NSW and WA after local customs officers say they found pests in the cargo.

January 11, 2021: Australia blocks $300million construction deal that would have seen state-owned China State Construction Engineering Corporation takeover Probuild. The bid was blacked over national security concerns. 

February 5, 2021: China confirms Melbourne journalist and single mother Cheng Lei has been formally arrested after being detained in August, 2020.

February 23, 2021: China accuses Australia of being in an 'axis of white supremacy' with the UK, USA, Canada and NZ in an editorial.

March 11, 2021: Australia is accused of genocide by a Communist Party newspaper editor. 

March 15, 2021: Trade Minister Dan Tehan announced he wants the World Trade Organisation to help mediate discussions between the two countries over the trade dispute. 

April 21, 2021: Foreign Minister Marise Payne announces Australia has scrapped Victoria's controversial Belt and Road deal with China using new veto powers. 

May 6, 2021: China indefinitely suspends all strategic economic talks with Australia, blaming the Morrison Government's attitude towards the relationship. The move cuts off all diplomatic contact with Beijing under the China-Australia Strategic Economic Dialogue, freezing discussions between key officials below a ministerial level.

June 22, 2021: China tries to 'ambush' Australia with a push to officially declare the Great Barrier Reef 'in danger' 

September 15, 2021: Australia, the UK and the US announce the AUKUS security pact which will give the Australian military nuclear-powered submarines to counter China growing aggression in the Indo Pacific. The move is met with seething anger in Beijing. 

March 24, 2022: Details of a Memorandum of Understanding emerge which could allow Beijing to station warships on the Solomon Islands, just 1,000 miles off the coast of Australia. Canberra warns it is 'concerned by any actions that destabilise the security of our region'.

April 25, 2022: Defence Minister Peter Dutton warns on Anzac Day that Russia and China's resurgence means Australia must be on a war-footing. 'The only way you can preserve peace is to prepare for war, and to be strong as a country,' he said. 'We're in a period very similar to the 1930s.'

April 27, 2022: Home Affairs Minister Karen Andrew says China is likely to send troops to the Solomon Islands, and was using the row to derail Australia's Federal Election. She said Beijing was 'clearly very aware we are in a federal election campaign at the moment.'

May 13, 2022: Defence Minister Peter Dutton announces Australian military are tracking a Chinese spy ship 250 nautical miles northwest of Broome in WA near the Harold E Holt naval communication station. The sighting was mostly written off as a pre-election stunt.

June 5, 2022: A Chinese fighter jet intercepts an Australian spy plane with a 'dangerous manoeuvre' on May 26 and the details are revealed weeks later.

November 14, 2022: Chinese President Xi Jinping agrees to meet with Australian PM Anthony Albanese on the sidelines of the G20 summit in Bali 

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