China & Water Control

To understand water power, you must first understand scale. Then you must understand leverage. Water is not environmental theatre — it is strategic input control.

START WITH SCALE: SYDNEY HARBOUR
Scale first. Always.

Sydney Harbour holds approximately 500 gigalitres of water (commonly cited estimate).

Foreign investment data has been used to illustrate that foreign interests control multiple Sydney Harbours’ worth of Australian water entitlements.
WATER IS “ECONOMIC OIL”
The non-negotiable input

Oil can be substituted, rerouted, hedged, and replaced over time. Water cannot. No water means no agriculture, no industrial continuity, no population stability — and no political legitimacy.

Treat water like economic oil: it is the input that determines food security, industrial output, social stability, and national resilience.

If you control the water, you control the timelines, the pressure points, and the negotiation space.

CHINA AND UPSTREAM POSITIONING
China is the world’s most prolific dam builder

China has pursued upstream water infrastructure at scale. It is the largest dam-builder on earth — and it is not close.

Hard scale: By December 2024, China had constructed more than 94,000 dams — the largest number globally.

Dams are not just infrastructure. They are leverage.

THE MEKONG: UPSTREAM LEVERAGE
Leverage over tens of millions

The Mekong supports tens of millions downstream. Upstream control creates leverage over agricultural timing, food pressure, and political influence.

  • Control upstream timing → control downstream planting cycles
  • Control seasonal release → influence food supply and pricing pressure
  • Control volatility → create uncertainty that weakens downstream governments

Water leverage is not loud. It is structural.

THE MURRAY–DARLING: A WESTERN COMPARISON
Governance lag creates instability — even without an adversary

The Murray–Darling shows what happens when governance lags hydrology: allocation failure, political conflict, and instability — without a foreign adversary.

  • Allocation failure becomes a political flashpoint
  • Stakeholder conflict slows decisions
  • The system becomes reactive rather than strategic

That is with no external actor deliberately positioning for leverage.

FACTUAL CONCLUSION
This is deliberate statecraft

It should be abundantly clear: China has deliberately positioned itself to secure control over critical water systems — domestically and regionally — as long-term statecraft.

Strategic ground is lost quietly — with delay, complacency, and a failure to recognise momentum while it is still reversible.

SPR ELITE VIEW
The long game and Australia’s blind spots

If Australia asserted sovereign control over water tomorrow, the consequences would be immediate: pricing disruption, diplomatic pressure, and capital consequences.

This is why water cannot be treated as a commodity line-item. It is strategic input control — and strategic input control becomes bargaining power.

China plays a longer game than Western democracies are comfortable with.

Western governments must always ask:
Why does China want these assets — and what strategic value do they see that we don’t?
What are they paying? What is the long-term gain?

Scorecard: Australia 0 — China 100