Australia will invest up to A$18bn (US$12bn) to strengthen manufacturing of missiles, including making advanced guided missile systems in the country for the first time, as part of an overhaul of its defence strategy in the face of rising geopolitical tensions.
Pat Conroy, Australia’s defence industry minister, said on Wednesday that strategic competition between China and the US was “sharpest” in the Indo-Pacific region as he announced the plan in Canberra. He cited a recent Chinese ballistic missile test that entered the south Pacific as a significant concern.
Australia has overhauled its defence strategy over the past three years to respond to China’s military build-up, following the creation of the Aukus alliance with the US and the UK, which will deliver nuclear-powered submarines to the Pacific country.