Live breaking news: Australia wants to 'pursue peace' with China

Prime Minister Scott Morrison has delivered a huge clue about Australia's future with China amid growing talks of a war. 

Scott Morrison has delivered a huge clue about Australia's future with China.

Speaking from the Northern Territory this afternoon, the PM made clear that a new $747 million funding package for military investment is not a sign to the nation that we're preparing for war, amid ongoing tensions with the region. 

"All of our objectives through the activities of our Defence Forces is designed to pursue peace," Mr Morrison told reporters.

"That is the objective of our government That is the path that we are pursuing but to do that in a region as uncertain as this you need to ensure that you have the Defence capability that enables you to protect and defend Australia's interests in that region.

"And this enables us to ensure there's an appropriate balance."

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