Australia announces A$1 billion missile programme with US, amid China’s activities in Pacific

Citing the ‘changing global environment’, PM Scott Morrison says Canberra will partner with a weapons manufacturer to build its own guided missiles

The news comes amid growing unease in the Pacific region about China’s increasing assertiveness and military abilities

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Australian PM Scott Morrison. Photo: AAP Image via AP

Published: 12:32pm, 31 Mar 2021Updated: 12:31pm, 31 Mar 2021

Australia on Wednesday announced it would begin building its own guided missiles in close collaboration with the United States as it seeks to boost its defence capabilities.

The news comes amid growing unease in the Pacific region about China’s increasing assertiveness and military abilities.

Citing the “changing global environment”, Prime Minister Scott Morrison said it would partner with a weapons manufacturer to build the missiles in a plan that would create thousands of jobs as well as export opportunities.

Morrison said it would initially spend A$1 billion (US$761 million) on the plan as part of a huge 10-year investment in defence and the defence industry.

“Creating our own sovereign capability on Australian soil is essential to keep Australians safe,” Morrison said.

It has been decades since Australia last manufactured advanced missiles, and it currently relies on importing them from allies including the US. Australia does currently build a decoy rocket aimed at disrupting incoming missiles.

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Michael Shoebridge, ASPI

Michael Shoebridge, the director of defence, strategy and national security at the independent think tank Australian Strategic Policy Institute, said the announcement was welcome news and filled a strategic gap.