This paper raises concerns about the observed increase in market concentration in Australia over the past twenty years that is not benign and has potential competitive consequences.

This research note examines the state-of-play in the Australian government contract market, and how it may affect competition in the broader economy. The value of government contracts in Australia has more than quintupled over the past decade to $190 billion in 2022, making government the dominant force with the power to impact market dynamics.

The authors of this paper argue that governments must pursue a deterrence strategy that seeks to change the People’s Republic of China's thinking on coercive tactics by reducing the perceived benefits and increasing the costs. The strategy should be based on policies that build deterrence in three forms: resilience, denial and punishment.