Australia plans to increase defense spending by nearly A$30 billion (US$21.6 billion) over the next 10 years, seeking to protect its strategic and trade interests in the Asia-Pacific as the US and its allies grapple with China’s rising power.
Defense spending is expected to reach A$195 billion, or 2 percent of GDP, by 2021-2022, as Australia buys new equipment including frigates, armored personnel carriers, fighter jets, drones and submarines, Australian Prime Minister Malcolm Turnbull told an armed forces audience in Canberra yesterday.
The strategic defense plan was designed in mind of the changing nature of regional security, particularly China’s economic and military rise and an increased US focus on the Asia-Pacific, Turnbull said.
“The United States will remain the pre-eminent global military power over the next two decades,” Turnbull said. “It will continue to be Australia’s most important strategic partner through our long-standing alliance, and the active presence of the United States will continue to underpin the stability of our region.”
The announcement riled Beijing, where the Chinese Ministry of Foreign Affairs expressed “dissatisfaction” with Australia’s “negative” remarks on the South China Sea and its military development.
Tensions between China and Taiwan, Vietnam, Malaysia, Brunei and the Philippines over sovereignty in the South China Sea have risen after China embarked on significant reclamation work on disputed islands and reefs in the area.
China claims most of the South China Sea, through which more than US$5 trillion in global trade passes every year.
Australian Minister for Defence Marise Payne said Canberra welcomed China’s economic rise and noted it would seek greater influence in the region.
“As a major power, it will be important for regional stability that China provides reassurance to its neighbors by being more transparent about its defense policies,” Payne said.
“The government will seek to deepen and broaden our important defense relationship with China while recognizing that our strategic interests may differ in relation to some regional and global security issues,” she said.
Australia has urged China and other claimants to refrain from island-building and militarization in the South China Sea in an effort to lower tensions.
“We hope the Australian side can correctly and positively view China’s development and strategic intent,” Chinese foreign ministry spokeswoman Hua Chunying (華春瑩) said at a regular press briefing later yesterday.
Asked if China wanted to see an arms race in the region, Hua said: “The answer to that is definitely no.”
In addition to detailing the number of new submarines, Payne said Australia would commit to a continuous shipbuilding program starting with nine frigates and 12 offshore patrol vessels.
The supplier of the submarines is to determined later this year.
Reuters reported earlier this month the competition for the A$50 billion contract to build Australia’s next submarine fleet is narrowing to a race between Japan and France. China last week urged Australia to consider Japan’s wartime history and the feelings of other Asian nations when making its decision.
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