Australia boosts defence spending by 40 per cent as China tensions rise

PM Scott Morrison said US$186 billion will be spent over the next decade to ‘maintain regional security and deter or respond to aggression in the Indo-Pacific’

Canberra’s relations with Beijing are increasingly strained over trade, the South China Sea, Huawei, espionage allegations, and Hong Kong

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Prime Minister Scott Morrison speaks during the launch of the 2020 Defence Strategic Update in Canberra. Australia significantly increased its defence spending, with Morrison warning the post-pandemic world will become more dangerous. Photo: AP

Published: 3:30pm, 1 Jul 2020Updated: 1:06pm, 13 Jul 2020

Australian Prime Minister Scott Morrison on Wednesday announced a significant increase in defence spending to boost the country’s military prowess in the Indo-Pacific, amid jitters about China’s growing power in the region.

In a major speech in Canberra, Morrison said the government would spend A$270 billion (US$186 billion) on defence over the next decade, up nearly 40 per cent from the A$195 billion pledged under its previous strategic review in 2016.

Warning that Australia must prepare for a post-pandemic world that would be “poorer, more dangerous and more disorderly”, Morrison said the country faced a “conflation of global economic and strategic uncertainty” not seen since World War II.

“The challenges and changing nature in the Indo-Pacific have meant we need a new approach and one that actively seeks to deter actions that are against our interests,” Morrison said. “These new capabilities will provide a strong credible deterrent in our region that will help provide the stability and security we need.”

Australian Prime Minister Scott Morrison and Defence Minister Linda Reynolds walk past a Boxer Combat Reconnaissance Vehicle ahead of the launch of the 2020 Defence Strategic Update in Canberra. Photo: EPA-EFE

Under the 2020 Defence Strategic Update and Force Structure Plan, the US ally will invest in new long-range missiles, cybersecurity capabilities and an underwater surveillance system as part of its efforts to “maintain regional security and deter or respond to aggression in the Indo-Pacific”.