China vs Australia: Canberra prepares for war with 400m defence upgrade as tension mounts

China vs Australia: Canberra prepares for war with £400m defence upgrade as tension mounts. AUSTRALIA is beefing up its defences by spending more than £400million on military bases in the north of the country Prime Minister Scott Morrison has confirmed, in a clear indication of mounting tensions with China. And Mr Morrison also said his country would be teaming up with the United States in expanded war games aimed at ensuring both nations were battle-ready. In an announcement that comes amid an increasingly bitter diplomatic and trade spat with China, Mr Morrison said Australia must expand its military assets in the Northern Territory to be able to respond to unspecified tensions in the Asia-Pacific region. Mr Morrison told reporters: “Our objective is a free and open Indo-Pacific, to ensure a peaceful region, one that, at the same time, Australia is in a position to always protect its interests.” He avoided naming China - but Australia's prioritising of the Indo-Pacific comes a