This is delusional Cold War "domino effect" thinking but somehow even stupider because there was at least some credibility to the idea that communism would be a popular enough ideology to be adopted in such a fashion. Please tell me why China would ever have any interest in invading and occupying any of those countries.
China wants to control everything that could affect them. Eventually they will fight to take over Taiwan. They will use economic power to force Australia to do what they want also.