It's recently been revealed that three years ago Australia began planning for possible war with China. Until now, all that was public was a 2009 military expansion program ("Force 2030") that called for new submarines and an expansion of the sub force from six to twelve boats. There was a secret section of the plan that discussed needed the larger submarine force to join with the U.S. fleet to shut down Chinese exports (of manufactured goods) and imports (of food, industrial supplies and raw materials). This part of the plan was kept secret so as not to offend the Chinese.
This revelation is hardly a shock. Just who does anyone think this could be aimed at?
The diplomatic crisis should be less that Australia sees China as a potential threat and more that China is acting threatening enough to worry Australia--and others.
Honestly, our pivot to Asia is met with relief in the region while China's growth in Asia is met with worry.