In this exhaustive analysis, I try to spell out the impact and potential consequences of the recently-brokered submarine deal between the U.S., the U.K., and Australia on Asia’s changing security landscape.
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All advanced navies of the world possess lethal submarines, powered by either diesel-electric or nuclear propulsion. These underwater warships are the most potent asset at the disposal of a naval force for maritime power projection, sea denial and sea control. Lying silently under water, they are capable of sinking surface ships, including large aircraft carriers, with torpedoes or ballistic missiles. Ever since WW-II, submarines have made its name as one of the most crucial components of maritime strategy and naval warfare. Australia and the U.K. are two key maritime nations of the world, which happen to be security allies of the United States, a country that owns and operates the largest fleet of nuclear-powered submarines in the world. Being nuclear-powered not necessarily mean being armed with nuclear warheads.
The 2021-formed AUKUS (Australia, U.S., U.K.) “enhanced trilateral security partnership” has taken cooperation between the three Anglophone countries to the next level. U.S. President Joe Biden hosted the prime ministers of the United Kingdom and Australia – PM Rishi Sunak and PM Anthony Albanese – in the Californian port city of San Diego on 13 March 2023, where they jointly announced a detailed four-phased plan to equip Australia (a non-nuclear-weapon state) with “conventionally armed, nuclear-powered” submarines (codenamed SSN) at least by the next decade along with strengthening cooperation in other areas such as critical and emerging technologies.
The plan would cost Canberra’s exchequer up to a whopping A$ 368 bn. (US$ 245 bn.) in total by 2055, according to reports. The detailed plan, spanning a time frame of three decades, was announced after an eighteen-month-long consultation period following the creation of AUKUS in mid-September 2021. Australian PM Anthony Albanese called the deal “the single biggest leap” in Australia’s defence capabilities in the nation’s history. If the plan goes ahead smoothly as planned, Australia will become the seventh country in the world to add nuclear-powered submarines to its navy. As the deal turns out to be a race against time, the biggest challenge is to ensure deterrence capabilities for Australia at the present, as the full benefits of the deal would take years to materialise.
AUKUS leaders believe that the deal would “strengthen deterrence and bolster stability in the Indo-Pacific and beyond for decades to come”, apparently keeping in mind the exponential growth of China’s naval power in the recent past. China has built 12 nuclear-powered submarines in the last two decades, including ballistic missile submarines (codenamed SSBNs) and is continuing its ambitious ship-building spree in all fronts. As per the AUKUS plan, the first phase of the deal is set to begin as early as this year, with U.S. and British SSNs increasing their port visits in Australia along with joint embedded training of naval personnel, which will be followed by a rotational deployment of U.S. and British SSNs in the island continent.
In the remaining two phases of the deal, Washington will deliver a flotilla of three to five advanced Virginia-class nuclear-powered submarines to Australia by the early 2030s, upon Congressional approval, and eventually a new “SSN-AUKUS class” of nuclear-powered submarines (SSN) will be developed in the decade that follows, for future commissioning in both British and Australian navies. With the use of nuclear energy involved, the Indo-Pacific region is abuzz with fears and concerns of an escalating arms race, even though AUKUS promises “the highest nuclear non-proliferation standard”.
Current owners of nuclear-powered submarines
As of now, only the five permanent members of the United Nations Security Council (U.S., Russia, China, U.K., France) and India have active nuclear-powered attack-capable submarines in their naval fleet (see the image below). More than half of the 130 active nuclear-powered submarines in the world are operated by the U.S. Navy (67), followed by Russia (31), China (12), U.K. (10), France (9) and India (1). The rise of China’s offensive military capabilities and its naval power in particular, since the 1990s, is the single largest factor that has convinced Canberra to join hands with Washington and London to bolster its own capabilities, through AUKUS, by making use of “next-generation” British hull design and “cutting-edge” American technology.
Countries with active nuclear powered submarines (via Statista)
The AUKUS deal smartly gets away with a loophole in the Nuclear Non-Proliferation Treaty (NPT) of 1968, which allows for the transfer of fissionable material and nuclear technology from a nuclear-weapon state (NWS) to a non-NWS if it is used for non-explosive military use like naval propulsion. Such a transfer is also exempted from inspections and monitoring by the Vienna-based International Atomic Energy Agency (IAEA), an organisation that stands for the peaceful use of nuclear energy and the promotion of nuclear safety. The IAEA Director General said that he had received “separate communications” on the matter from the Prime Minister and Foreign Minister of Australia, as well as from the U.K. and the U.S.
Mixed reactions
Of all the countries that have reacted to the highly ambitious AUKUS project, the responses of China and Russia stands out, as they are in direct strategic competition with the de facto leader of AUKUS – the United States. While the Chinese foreign ministry spokesperson remarked that the U.S. and its AUKUS allies are “walking further and further down the path of error and danger for their own geopolitical self-interest”, Russian foreign minister commented, “the Anglo-Saxon world, with the creation of structures like AUKUS and with the advancement of NATO military infrastructures into Asia, is making a serious bet on many years of confrontation in Asia”.
While Australian Foreign Minister Penny Wong cities Canberra’s bid for “strategic equilibrium” in the region as the underlying factor that led to the AUKUS pact, opinions on the submarine deal, which comes at a humongous cost, are not uniform across Australia’s political spectrum. Former Prime Minister Paul Keating thinks Canberra is compromising on a proper national defence strategy to help maintain U.S. “strategic hegemony” in Asia and has also stated that the submarine deal would be ineffective in the event of a war. Indonesia, Malaysia and New Zealand have also shared their concerns about the risk of nuclear proliferation in the region.
As per the Bangkok Treaty of 1995, Southeast Asia is a nuclear-weapon-free zone (NWFZ). Moreover, almost all of the ASEAN member-states have deep economic linkages with China, even though they rely on the U.S. for “security and stability” in Asia. Even though some of them have disputes with Beijing in the South China Sea, like the Philippines and Vietnam, they prefer to avoid unnecessary “provocations” and try to balance their ties with the U.S. and China, amid intensifying regional rivalry between the two big powers. Australian defence and foreign ministries are expected to embark on a diplomatic charm offensive to assuage all concerns of Southeast Asian countries lying in China’s periphery.
Eyeing for balance of power
AUKUS was announced just one year after a Pentagon report claimed that China has built the world’s largest naval fleet in sheer numerical terms, even though the Chinese People’s Liberation Army Navy (PLAN) relies mostly on smaller classes of ships, while the U.S. naval strength is further multiplied by its allied navies. One of the most-overlooked events of March 2023 was the annual session of China’s ceremonial national legislature, the National People’s Congress (NPC), which handed over China’s Presidency to the hyper-nationalistic and revanchist leader Xi Jinping for an unprecedented third time in a row.
The newly-appointed Chinese foreign minister Qin Gang, formerly China’s Ambassador to the United States, held a press conference on the sidelines of the NPC, during which he made a significant remark that throws light on the deteriorating state of U.S.-China relations. He accused the U.S. of harbouring a “Cold War mentality” and said, “… the United States claims that it seeks to out-compete China but does not seek conflict. Yet in reality, it’s so-called competition means to contain and suppress China in all respects and get the two countries locked in a zero-sum game … If the United States does not hit the brake but continues to speed down the wrong path, no amount of guardrails can prevent derailing, and there will surely be conflict and confrontation … Containment and suppression will not make America great, and it will not stop the rejuvenation of China …”
Washington’s shooting of a suspected Chinese “spy balloon” that flew over American airspace earlier this year is the latest example of this downward spiral in U.S.-China ties. The Indo-Pacific, as a geostrategic concept and a broader maritime region, came into being as China began to flex its military muscles throughout its immediate and extended neighbourhood, where U.S. and its allies have a robust military presence.
Being part of the U.S.-led alliance system, including the “Five Eyes” intelligence-sharing network and the recent AUKUS pact, Canberra has become a lynchpin of Washington’s evolving Indo-Pacific strategy to counter growing Chinese assertiveness and stated offensive intentions vis-à-vis Taiwan, the South and East China Seas, and also the Line of Actual Control (LAC) with India. Australia is also due to the host the third in-person Quad leaders’ summit later this year.
As the “threat perception” of China in the West continues to rise day by day, the extent to which an AUKUS-centered deterrence is possible in Asia remains to be seen in the years to come.
