The United Kingdom is cracking down on British troops selling military secrets to China as allegations are raised about how widespread the practice is among Australian personnel.
British Armed Forces Minister James Heappey said it was "naive" to think China wasn't a competitor and the government was "moving at pace" to hold perpetrators to account.
"It is offensive to me as someone who has served in the UK armed forces that other veterans of the UK armed forces might somehow think it is acceptable for them for their own financial gain, to go off and work with a competitor," he said.
Mr Heappey said he suspected allies and partners "who have also seen their veterans being used in that way" would also conduct their own clamp downs.
The Australian government is developing its own legislation to tighten secrecy requirements as a matter of priority.
A spokesperson for Defence Minister Richard Marles said a departmental review found further legislation could be put in place "to ensure there is absolutely no doubt whatsoever that we protect our defence force’s secrets".
It comes as Washington is trying to extradite former US fighter pilot Daniel Duggan from Australia to face charges of violating arms export laws and money laundering, which he denies.
Mr Duggan is accused of training Chinese military pilots.
Speaking from Lithgow prison where he is being held in remand while his case is before the courts, Mr Duggan said he was simply an employee at the South African flight academy.
"There was nothing wrong, I went as an employee with other Western pilots, including other Australians, and trained civilian Chinese test pilots," he told the ABC's 7:30 program.
Asked whether the training included teaching pilots to take off and land from aircraft carriers, he said no illegal training was conducted.
He said all the information was in the public domain and "anybody, if they're interested to, could Google it or look it up on Wikipedia" and accused Washington of pursuing the charges for political purposes as it ramps up its rhetoric against China
"There was no secret information or propriety information," he said.
"It has nothing to do with me personally, it's more to do with the signal that they want to send."
His lawyer Bernard Collaery said it was hypocritical Mr Duggan was being prosecuted for teaching at the school between 2010 and 2012 when the Australian and Chinese militaries conducted joint operations at the same time.
"It's a double standard, it's hypocrisy," he said.
