Business with USA is making waves in Australia

Submarine trade with the United States is causing a stir in Australia. Some fear that the country will be unwittingly drawn into conflict with China.

DrThe planned purchase of nuclear-powered submarines from the USA is causing a stir in Australia. Australian Prime Minister Anthony Albanese described the deal, worth up to 230 billion euros, as “the largest single investment in Australian defense capacity in history.” The plan announced by the heads of government of the three member governments of the AUKUS security agreement stipulates that Australia will have about a dozen nuclear-powered submarines by the mid-2050s. These include at least three US Virginia-class submarines and eight examples of a submarine that the three partners in the so-called AUKUS security agreement – the United States, Australia and Great Britain – would like to develop together.

The conservative opposition supports the project. From the perspective of proponents, the plan enables Australia to respond to the strategic challenges it faces, especially in its Asian neighbourhood. This primarily indicates China’s growing military power. Compared to conventionally powered submarines, their nuclear-powered counterparts are quieter, can remain underwater for months and have a longer range. This means that Australia can not only defend its coasts, but is also able to deploy militarily in the South China Sea and off Taiwan. Defense Secretary Richard Marles even spoke of “the biggest leap in our military capabilities in our history.”