Australia launches industry boost to support AUKUS as China hikes defence spending

The Albanese government is launching an AUKUS game plan for Australian industry against a backdrop of higher defence spending in China.

The Albanese government is launching a game plan to bolster industry as Australia inches closer to building a fleet of AUKUS submarines against a backdrop of soaring defence spending by China.

The AUKUS Submarine Industry Strategy targets key areas to prepare for the 20,000 direct jobs the nuclear-powered fleet is estimated to create over the next three decades.

Launching the blueprint on Wednesday, Richard Marles said it would “evolve” with the AUKUS program.

Australia is inching closer to building a fleet of AUKUS submarines. Picture: BAE Systems

“Australian industry will be at the forefront of our conventionally armed, nuclear‑powered submarine program – helping to build, operate and maintain this crucial capability,” the Deputy Prime Minister said in a statement.

“Australia’s AUKUS Submarine Industry Strategy sets out how the Albanese government will continue to implement initiatives and programs to support, guide and grow priority industry sectors alongside our AUKUS partners.

“Our work does not stop here. As a multi-decade, multi-generational undertaking which will create around 20,000 jobs across the country, the strategy will continue to evolve in line with industry and capability requirements as the AUKUS pathway progresses.”

Attracting investment in critical areas, slashing red tape and growing a skilled workforce are among the strategy’s core goals, backed by a $262m federal investment announced earlier this year.

Deputy Prime Minister Richard Marles says ‘Australian industry will be at the forefront’ of AUKUS. Picture: NewsWire / Morgan Sette

Integrating Australian industry into US and UK supply chains is another.

But certainty that vision is shared by all members of the AUKUS alliance has been shattered by Donald Trump’s second White House win.

The US President’s America-first agenda has manifested in pledges of sweeping tariffs slapped on Washington’s closest allies and biggest adversaries alike.

The Albanese government has said the Trump administration is firmly committed to AUKUS, with US Secretary of State Marco Rubio calling it a “blueprint” for how the US should work with allies.

But the US’s crumbling support for European security has sparked concerns in Canberra, which is relying on the submarines to head off future risks posed by an increasingly militaristic China.

Meanwhile, Beijing announced on Wednesday it would boost defence spending by 7.2 per cent this year despite sluggish economic growth.

It is widely expected the real figure could be as high as 45 per cent when considering indirect spending.

Originally published as Australia launches industry boost to support AUKUS as China hikes defence spending