Description: Australian Prime Minister, Anthony Albanese, has announced that his government completed the second payment installment as part of the AUKUS agreement to the US. He emphasized the importance of the agreement and Australia’s commitment in strengthening its defenses in times of growing threats from China. The US in Apr, launched a review of the AUKUS partnership citing national security interests and foreign policy concerns. AUKUS was signed in 2021 in San Diego and represents a joint defense pact between the US, the UK and Australia aimed at developing Australia’s nuclear powered attack submarine capacities. The second installment was estimated at $525 million with another $2 billion expected to be paid by Australia to the US by the end of the year.
Impact: Australia’s move demonstrates the country’s commitment to enforce the AUKUS partnership into future existence and more importantly comes after Albanese visited China and discussed trade and bilateral ties with Xi Jinping. The US review of the AUKUS partnership has been stalled, with Australia exploiting the diplomatic momentum to shatter any doubts regarding the effectiveness of the trilateral partnership and ensure the progress of the program. The submarine deal would represent the largest defense project commitment by Australia and its importance considerably impacts the power dynamics in the Indo – Pacific where China dominates in naval presence and military influence. Australia by committing the funds also confirmed strategic realignment with its western partners despite the concerns that Albanese was swaying his country towards strategically neutral grounds by courting China and distancing Australia from its traditional western alignment.