Australia cannot let Papua New Guinea allow a “declared enemy” to establish a potential military base on our doorstep, according to Sky News host Cory Bernardi.

China has recently announced it will build a new $200 million fishery complex at Daru Island in PNG’s western province and a mere six-hour boat ride from Thursday Island off the coast of Australia’s northern-most point.

The area in which China plans to build the massive complex has no commercial fishing activities and is 200 kilometres off mainland Australia.

Mr Bernardi said if China is true to form it will first build a wharf “just big enough for naval vessels” and much bigger than that which would be required to service villagers with non-commercial fishing interests.

“Then the Chinese 'fishing fleet' will arrive,” he said.

“A Chinese spy fleet active in the waters of the Torres Strait should concern us all.

“Australia is a major funder of Papua New Guinea, tossing in around $600 million every year to a country renowned for corruption and misuse of public funds. Previously we have turned a blind eye to the misuse of our money in PNG because it has a key location pivotal to our national security.

“However, we can't afford to ignore the decision of the PNG government to take both our money and allow our declared enemy to establish a not so covert potential military base on our doorstep.”

Australia’s relationship with China has suffered over the past year due to escalating trade-tensions.

In April, amid a nation-wide lockdown, Australia demanded an independent inquiry into the origins of the coronavirus.

However, the Chinese government was incensed by the request and hit back with threats of a consumer boycott on Australian goods.

When Australia refused to back down and continued its calls for a proper assessment into the origins of the pandemic, Beijing followed through with their threats, suspending beef abattoirs in May, and imposing hefty tariffs on Australian goods, including wine, lobster, barely and coal.

The fractured relationship was further demonstrated after the Chinese embassy in Canberra issued a dossier containing 14 grievances against the Australian government in November in a deliberate ploy to reverse key policies.

Toward the end of the year, Australia brought a trade dispute with China over tariffs placed on Australian barley to the World Trade Organisation.

Australian moves into 2021 no closer to rescuing its rocky relationship with China.