Former Australian defence force chief Angus Houston has concluded it may be too late to stop Beijing's activities in the South China Sea.
Instead the focus should shift to ensuring freedom of navigation and the right of innocent passage, Sir Angus told a dinner conference on Australia-Japan-US strategic co-operation on Monday night in Canberra.
China claims most of the South China Sea, which is oil and gas rich and has $5 trillion in trade pass through every year. Brunei, Malaysia, Taiwan and Vietnam also have claims.
In the past four years, Beijing has been building islands to bolster its sovereignty and its so-called nine-dash line claim.
Satellite imagery suggests three of the islands could be developed to conduct air combat and air surveillance activities and other islands could be used for other military purposes.
This development will potentially enable China to extend its permanent military presence further south closer to Indonesia, Malaysia and Singapore.
"In my view it is too late to stop the China program in the South China Sea," Sir Angus told the dinner at the Australian National University.
He said it was important to find ways to discourage nations from acting unilaterally as well as measures to resolve territorial disputes in accordance with international law.
His comments come after tough talk from key US Trump administration officials that America might deny China access to the islands or prevent it from taking over territory in international waters.
Sir Angus also offered up some advice for the new US administration about the importance of maintaining a strong permanent presence in the Indo-Pacific region.
"Pulling back to Hawaii will leave a vacuum that will be filled by China, who will see herself as the predominant power in the region," he said.
Sir Angus believes the US also needs to engage with and make space for China.
He cited some good examples of inclusiveness - China's participation in counter-piracy operations in the Arabian Sea, the world's largest maritime warfare exercise Rim of the Pacific (RIMPAC) and the search for missing Malaysia Airlines flight MH370.
"We need more co-operation and less competition," he said.
