Australian troops wear dress uniforms made in China because none of the five companies which tendered for the deal offered to make them in Australia.
A Senate committee has heard that since 2003 the uniforms had variously been made in China, Vietnam and Fiji under a range of contracts, but combat uniforms and combat boots continue to be made in Australia.
Major General David Coghlan said that occurred because of the decline of the Australian textile clothing and footwear industry.
Major General Coghlan said representatives of the five companies attended an industry forum in Melbourne on Tuesday.
"No company offered an Australian-based solution as of yesterday or an opinion on the offshore production," he said.
Of the five tenderers none had a made-in-Australia option.
The contract did not specify the uniforms be made in Australia.
The winner, a sub-contractor to Australian Defence Apparel, was privately-owned Chinese firm Shandong Yeliya which Defence says doesn't make uniforms for China's military.
General Coghlan said Defence subsequently sought information about what production in Australia would have cost, concluding if it could have been done it would have cost more.
Defence still sources most of its clothing in Australia.
General Coghlan said in 2015-16, Defence purchased 330,000 garments of which 300,000 were made in Australia.
In 2016-17, Defence plans to buy 433,000 garments, with 370,000 to be made in Australia.
