During the Shangri-la Dialogue, held by the International Institute for Strategic Studies, Marles attracted attention when he emphasized that China's military capabilities have expanded more than any nation since World War II. He highlighted the lack of strategic transparency surrounding China's military actions, prompting fears and uncertainty among regional allies. "What we seek is clarity about China’s intentions," he said, contrasting this with Australia’s openness about its defense strategies aimed at ensuring security in the region.

Marles also responded to concerns regarding a recent Chinese military exercise near Australia and New Zealand, affirming China's adherence to international law despite the exercises being seen as provocative. Both he and his counterpart in the Philippines, Gilberto Teodoro Jr, who labelled China's behavior as "irresponsible," called for a collaborative, rule-based order in the Asia-Pacific.

This year's dialogue showcased a focus on aligning Indo-Pacific nations in response to perceived threats from China, with discussions on boosting defense budgets and international cooperation. The U.S. Defense Secretary echoed fears of China’s increasing hegemony and imminent threats, especially regarding Taiwan, which China claims sovereignty over.

French President Emmanuel Macron contributed to the discussion by urging Europe to ally with Asia, but his remarks on Taiwan drew sharp criticism from China. In response, China asserted that the nation remains committed to its claims over Taiwan and that Western nations should refrain from interference.

As tensions rise, Australia and its allies remain vigilant, emphasizing the need for strategic reassurance and heightened collaboration amid an increasingly assertive China.