THE shock unveiling of a new Chinese stealth fighter aircraft has changed Asia's power balance and means Australia must dramatically rethink its regional strategy, according to an Australian analyst.

Peter Goon, a vehement critic of the F-35 Joint Strike Fighter Australia has committed to buying from the United States, says the Chinese J-20 is far superior to the American fighter and Australia must immediately adapt to the new status quo.

The world has been shocked by the unveiling of the J-20, a new Chinese stealth fighter aircraft. Credit:Reuters

The Chinese tested the J-20 for the first time last week, on the day that US Secretary of Defence Robert Gates arrived in Beijing for talks. Although the Chinese claimed the timing was coincidental, Mr Gates expressed concerns about the military's motives.

Lowy Institute analyst Rory Medcalf, a recent visitor to Beijing, said it was possible that the military did not tell the government in advance of the testing, as a way of expressing displeasure at Mr Gates's visit.