Non allies then. Or countries with goals in conflict with ours.

Chines ancestry is not the same as being a Chinese citizen. They already check for many things, when assessing whether you are suitable for access to secrets. Sounds like it might be more tick the box than actual checks.

My partner is in Defence. I know people of many nationalities that serve. I was surprised it was allowed, initially but it makes sense in the context of Australian people being born overseas commonly. I’m also Australian with dual citizenship. I would consider myself more if a risk than my kids, for instance. I wouldn’t betray Australia and love life here. However if my family were threatened that might change things. That’s not uncommon in China or Russia from my understanding.