At a time of heightened tension in the region China's President Xi Jinping, issued a warning.
The rhetoric suggests escalation.
Australia's Defence Minister Richard Marles confirmed that highly sensitive national secrets may have been compromised.
The warning follows reports Beijing has been trying to recruit retired western pilots to help train its military.
Dennis Richardson, a former secretary of the department says he's shocked by the developments.
Shadow Defence Minister and former S-A-S soldier, Andrew Hastie revealing to the A-B-C that he's aware of some who've been approached.
Prime Minister Anthony Albanese is just days away from travelling overseas to meet with world leaders at the ASEAN, G-20 and A-PEC summits.
Hopeful for a meeting with China's President Xi Jingping who'll also attend, it would be the first with an Australian Prime Minister in six years.