Australia has announced a US$4.7 billion deal to equip its navy with advanced US-made medium- and long-range missiles. This significant investment is part of a broader strategy to counter growing concerns about China’s increasing military presence and “coercive tactics” in the region.
The landmark agreement, described as a “significant milestone” by Australian officials, aligns with the country’s revised defence strategy, unveiled earlier this year, which prioritizes military modernization to secure critical trade routes and safeguard national security.
Australia’s Minister for Defence Industry, Pat Conroy, who is currently visiting Washington, emphasized the urgency of bolstering the country’s military capabilities. “Australia faces the most complex geo-strategic environment since the Second World War,” Conroy said, highlighting the challenges posed by the shifting balance of power in the Asia-Pacific region.
The US$4.7 billion deal will enable the Australian Navy to acquire state-of-the-art missile systems designed to enhance the firepower and defensive capabilities of its naval fleet. The acquisition includes two types of cutting-edge missiles: the SM-6 and the SM-2 Block III C.
The SM-6, a highly versatile surface-to-air missile, is capable of engaging a wide range of threats, from enemy aircraft to cruise missiles, providing the Australian Navy with a critical edge in air defence. It can also target surface ships, offering a broad array of strike options in combat scenarios.
In addition, the SM-2 Block III C missile, equipped with advanced guidance and homing technology, will be added to Australia’s arsenal. This medium-range missile is expected to significantly enhance the navy’s ability to detect and neutralize threats at sea.
The Australian government has indicated that these missile systems will be progressively deployed across the Royal Australian Navy’s three Hobart-class destroyers and, in the future, its planned fleet of Hunter-class anti-submarine warfare frigates, which are currently under development.
According to Australia’s Defence Minister Richard Marles, the deployment of these sophisticated missiles will greatly improve the country’s ability to respond to emerging threats in the region. “They will enable our Navy to strike maritime, land, and air targets at long range, and provide a terminal ballistic missile defence capability, boosting the capacity for the Australian Defence Force (ADF) to safeguard Australians and their interests,” he said.
Australia’s decision to bolster its naval defences comes at a time of heightened military tension in the Asia-Pacific. As China expands its influence through initiatives such as the Belt and Road Initiative and increases its military presence in the South China Sea, regional powers are reassessing their defence strategies to counter potential security threats.
The South China Sea, in particular, has become a flashpoint for territorial disputes, with China claiming nearly the entire area despite overlapping claims from other nations, including the Philippines, Vietnam, and Malaysia. The region is also home to critical shipping lanes that carry an estimated US$5 trillion in trade annually, making the security of these waters essential to global commerce.
Australia, as a key player in the Indo-Pacific, has increasingly found itself at the center of this geopolitical struggle. Its strategic location, close ties with the United States, and growing concerns over China’s assertiveness have pushed Canberra to rethink its defence priorities.
In April 2024, Australia unveiled a comprehensive defence strategy designed to address the growing security challenges in the region. This strategy called for a sharp increase in defence spending, focusing on the development of naval and air capabilities to counter potential threats to Australia’s trade routes and national sovereignty.
The acquisition of US-made missiles is just one component of this broader effort to modernize Australia’s military. In addition to the missile deal, Australia is also participating in the AUKUS agreement—a trilateral security pact with the United States and the United Kingdom aimed at enhancing Australia’s defence capabilities through the development of nuclear-powered submarines.
The AUKUS agreement, announced in 2021, represents a significant shift in Australia’s defence policy. Under this pact, Australia will acquire nuclear-powered submarines, which will provide the country with a powerful deterrent against potential adversaries and enhance its ability to project power across the region.
The nuclear-powered submarines, which are expected to be delivered in the 2030s, will give Australia the ability to conduct long-range missions without the need for frequent refueling, allowing it to operate more effectively in the Indo-Pacific. These submarines are designed to be stealthy, making them difficult to detect and capable of delivering a range of strategic options, from intelligence gathering to offensive operations.
The AUKUS pact has been praised by Australian officials as a game-changer for the country’s defence posture. “We are entering a new era of defence cooperation with our closest allies,” said Defence Minister Richard Marles. “The development of these submarines will provide Australia with a critical capability that will enhance our ability to defend our interests in a rapidly changing world.”
However, the agreement has also raised concerns, particularly in the region. China’s government has condemned AUKUS, arguing that it could destabilize the Asia-Pacific by fueling an arms race. Beijing has repeatedly warned Australia and its allies against increasing their military presence in the region, accusing them of attempting to contain China’s rise.
Despite these warnings, Australia has maintained that the AUKUS pact and its missile acquisition efforts are defensive in nature and aimed at preserving regional stability. Australian officials have argued that a stronger military presence in the Indo-Pacific will help deter potential aggression and contribute to the security of the region as a whole.
China’s military modernization and expanding naval capabilities have become a growing concern for many countries in the Asia-Pacific. Beijing has invested heavily in its military, particularly its navy, which now boasts the largest fleet in the world. The People’s Liberation Army Navy (PLAN) has developed a formidable array of warships, submarines, and missiles, and its presence in the region has grown more assertive in recent years.
One of the key flashpoints in the Asia-Pacific is Taiwan, an island nation that China claims as its own territory. In recent years, tensions between Beijing and Taipei have escalated, with China conducting military exercises near the island and threatening to reunify Taiwan by force if necessary. The potential for conflict over Taiwan has raised alarms in Australia and other nations, as any military confrontation in the region could have far-reaching consequences.
Australia’s decision to invest in long-range missiles and nuclear-powered submarines reflects a growing recognition of the need to prepare for the possibility of a conflict in the Asia-Pacific. While Australia has traditionally relied on its alliances with the United States and other Western powers for security, the changing dynamics in the region have prompted Canberra to take a more proactive approach to its defence strategy.
The new missile systems will give Australia the ability to defend itself from a range of potential threats, including those posed by China’s growing military presence. By investing in advanced weapons and strengthening its naval capabilities, Australia is positioning itself to play a more active role in maintaining peace and stability in the Indo-Pacific.
Australia’s efforts to bolster its military capabilities are not happening in isolation. In recent years, the country has deepened its defence ties with key allies, including the United States, Japan, and India, as part of broader efforts to counterbalance China’s influence in the region.
The Quadrilateral Security Dialogue, or “Quad”, is one such initiative that has gained prominence in recent years. Comprised of Australia, the United States, Japan, and India, the Quad is seen as a counterweight to China’s growing power in the Indo-Pacific. The group has increased its military cooperation, holding joint naval exercises and engaging in discussions on regional security.
Australia’s missile acquisition and participation in AUKUS are likely to further strengthen its ties with these key allies. By enhancing its military capabilities, Australia is positioning itself as a reliable partner in efforts to maintain a free and open Indo-Pacific, where international law and norms are respected.
