Because of its geostrategic position Australia has a very important role in the U.S. system of alliances. Despite constrains on the budget because of the economic crisis, Australia is focused on improving its defense capabilities. The rationale behind is the growing threat of China in the region. The partnership with the United States is seen as a crucial to the regional stability.
Current Development
In 2009 the government of Australia stated that it is against the national ballistic missile defense system in its latest Defense White Paper on the grounds that the system upsets global strategic balance. Obviously China’s influence in the region played role in this statement.
This movement is quite strange considering the fact that the U.S. ballistic missile defense system is designed to counter limited strikes from rogue states (Iran, North Korea), not strategic arsenals of either China or Russia.
However, the Australian government clearly recognizes the existence of the limited threat.
Capabilities
Australian first Aegis ballistic missile defense system was tested in August 2009. The order for three Australian Air Warfare Destroyers (AWD) was placed in 2007.