2016 DEFENCE WHITE PAPER

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42 CHAPTER TWO: STRATEGIC OUTLOOK SECTION ONE STRATEGY on a day to day basis across many joint endeavours, discussed further in Chapter Five. The levels of security and stability we seek in the Indo-Pacific would not be achievable without the United States. The United States is committed to enhancing collaboration with its allies and partners. Australia will continue to work with the United States under the Australia, New Zealand and United States (ANZUS) Treaty to support the United States' strategy of focusing resources and attention towards the Indo-Pacific through its strategic rebalance, which includes strengthening its alliances and ties with countries in the Indo-Pacific. The rebalance demonstrates the commitment of the United States to the long-term security of the Indo-Pacific. 2.10 While China will not match the global strategic weight of the United States, the growth of China’s national power, including its military modernisation, means China’s policies and actions will have a major impact on the stability of the Indo-Pacific to 2035. 2.11 China’s Navy is now the largest in Asia. By 2020 China’s submarine force is likely to grow to more than 70 submarines. China also possesses the largest air force in Asia, and is pursuing advanced fifth-generation fighter aircraft capabilities. China’s military modernisation includes more-capable special forces, aviation and command and control networks and it is also investing in new technologies including space and cyber capabilities. 2.12 As China grows, it will continue to seek greater influence within the region. As a major power, it will be important for regional stability that China provides reassurance to its neighbours by being more transparent about its defence policies. In that regard the Government notes the publication in May 2015 of China’s Defence White Paper. 2.13 China’s military modernisation means it has greater capacity to share the responsibility of supporting regional and global security. The Government welcomes China’s growing participation in United Nations
Australia’s security environment 43 peacekeeping, humanitarian assistance, disaster relief and anti-piracy operations. Australia will expand its defence relationship with China over coming years, as outlined in Chapter Five. 2.14 The relationship between the United States and China is likely to be characterised by a mixture of cooperation and competition depending on where and how their interests intersect. The United States and China share important interests in deepening their economic integration. The governments of both countries have publicly committed to a constructive relationship and it is not in the interests of either country to see an unstable international environment in which the free and open movement of trade and investment is compromised. The United States and China already cooperate in many security areas where their interests intersect, demonstrated by their joint exercises in search and rescue, counter-piracy, humanitarian assistance and disaster relief operations. SECTION ONE STRATEGY 2.15 In recent years the United States and China have also increased senior-level dialogue on defence matters and have developed a range of bilateral mechanisms to increase transparency, reduce misunderstanding, and de-escalate tension. This includes the November 2014 agreement on rules of behaviours for safe military encounters at sea and in the air. Both countries also actively participate in the evolving regional security architecture, including the East Asia Summit, the Association of South East Asian Nations (ASEAN) Regional Forum and the ASEAN Defence Ministers’ Meeting-Plus (ADMM-Plus). 2.16 While major conflict between the United States and China is unlikely, there are a number of points of friction in the region in which differences between the United States and China could generate rising tensions. These points of friction include the East China and South China Seas, the airspace above those seas, and in the rules that govern international behaviour, particularly in the cyber and space domains. 2016 DEFENCE WHITE PAPER
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Page 6 and 7: 4 TABLE OF CONTENTS The United Stat
Page 8 and 9: 6 TABLE OF CONTENTS The South Pacif
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Page 12 and 13: 10 MINISTER’S INTRODUCTION The Au
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Page 16 and 17: 14 EXECUTIVE SUMMARY dynamics betwe
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Page 26 and 27: 24 EXECUTIVE SUMMARY The Government
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Page 33 and 34: Why now? 31 strategy and budget, de
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162 SECTION THREE REFORM, RESOURCIN
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177 ``Chapter Eight: Funding Defenc
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The funding model 179 provided assu
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How will Defence funding be spent?
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Budgeting in Defence 183 8.18 Imple
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