China’s test launch of a nuclear-capable missile into the Pacific damaged its standing in the region, Pacific Minister Pat Conroy says, arguing it has strengthened the case for a regional security pact within the Pacific.

On Monday, China fired the ballistic missile from a submarine and it then flew over multiple Pacific islands and appeared to hit waters close to Tuvalu’s exclusive economic zone. China had called the launch “routine”, but Pacific leaders including Prime Minister Albanese sharply criticised the test as “provocative” and “destabilising”.

Mr Conroy said the test had damaged China’s reputation as a potential security partner, pointing to criticism from leaders in Fiji, Papua New Guinea, Palau, the Solomon Islands and Tuvalu. Asked whether the missile test had emboldened countries in the region to pursue a regional security agreement, Mr Conroy said the incident underscored the need for Pacific-led security.

Pushed on whether the defence force had the capability to protect Australia from a strike like the one launched by China last week, Mr Conroy said the government was strengthening Australia’s position through diplomacy and defence resourcing. “What we’re seeing in the region is the biggest arms race, the biggest build-up of the military since 1945 and, and that is occurring without any transparency or strategic reassurance,” he said.

Solomon Islands Prime Minister Matthew Wale had been seeking support for the idea ahead of a meeting of leaders of the Pacific Islands forum next month, pointing to the missile test as strengthening the case for a regional security pact.

Iran reported strikes on two of its southern islands while Kuwait, where Tehran has repeatedly targeted US installations, said border posts and an offshore oil platform had been attacked.

The as-yet unclaimed strikes came hours after Tehran and Washington exchanged fire for the third time this week, with control of Hormuz again the central issue, plunging into further question negotiations aimed at building on a preliminary deal and ending the Middle East war for good. Iranian state media also recently reported explosions on the island of Qeshm and the cities of Jask and Bandar Abbas, as well as other sites across the country, according to a Reuters report.

US Central Command then posted on X it was launching more strikes on Iran to “continue degrading their ability to attack civilian mariners and commercial ships freely transiting the Strait of Hormuz”.

Iran’s Revolutionary Guards Corp (IRGC) said after the incident that “the Strait of Hormuz would be closed until further notice and until the end of American interventions in this region”, according to state news agency IRNA. The US military’s Central Command countered on X that the strait was “open to all vessels seeking to lawfully transit”.

China is accelerating the development of robotaxi technology and hopes to replicate the success of its electric vehicle (EV) industry, becoming a major competitor in the global autonomous driving market.

In Beijing’s Yizhuang district, self-driving taxis have entered commercial testing. Companies including Baidu, WeRide, and Pony.ai are providing robotaxi services in designated areas. Passengers can simply book a ride through a mobile app, and the vehicles can navigate city roads without a human driver.

China’s advantage in autonomous driving partly comes from its mature EV supply chain. Self-driving vehicles rely on key components such as batteries, sensors, chips, and onboard computers. The industrial network built during China’s EV expansion has allowed related companies to develop technologies faster and at lower costs.

In addition, several Chinese cities have opened public roads for autonomous driving trials. The country’s complex traffic environments also provide large amounts of real-world data, helping artificial intelligence systems improve their driving capabilities.

However, expanding robotaxis globally still faces challenges. Different regions have varying climates, road conditions, and regulatory requirements, while safety concerns continue to affect public trust. Earlier this year, Baidu’s Apollo Gorobotaxi service experienced a software failure that caused around 100 autonomous vehicles in Wuhan to stop operating, raising concerns over reliability.

The Chinese government views artificial intelligence and robotics as key areas of “new quality productive forces”, and companies continue to pursue overseas expansion. Whether robotaxis can become another successful Chinese technology export will depend on technological reliability, safety, and global acceptance.

Commentary:

China’s push into robotaxis represents not only a breakthrough in transportation technology but also the expansion of US-China competition into artificial intelligence and advanced technology sectors. However, robotaxis face higher barriers than electric vehicles. Autonomous driving involves large amounts of road data, mapping information, and user data, raising national security and data regulation concerns in overseas markets.

Meanwhile, US companies such as Waymo have accumulated years of experience in autonomous driving and hold advantages in safety testing and user experience. While Chinese firms can rapidly deploy services at lower costs, they still need to prove reliability and build international trust.

As a result, robotaxis may become the next major battleground in US-China technological competition. China’s strengths lie in industrial scale and rapid commercialisation, while the US maintains advantages in technology standards, brand trust, and global influence. The future competition will not only depend on who can produce more vehicles, but who can build a globally accepted autonomous driving ecosystem.