China has expressed "grave concern" over the US' deployment of a medium-range missile system in the Asia Pacific.

Budget plans foresee the most significant ramp-up only at the end of the decade, leaving Australia vulnerable to Chinese aggression in the meantime.

Despite the thawing of China-Australia relations, Australia has accused China of "coercion." Australia unveiled its new defense strategy on Wednesday, announcing an increase of around AU$50 billion ($32 million) in defense spending over the next decade.

The insights provided by Jeffrey Shih, CEO at Dimerco, illuminate the multifaceted strategies and approaches essential for navigating these challenges.

The Chinese government has issued a sharp riposte to Australia's increased defence budget, repeating its claim the federal government holds a "Cold War mentality". It follows yesterday's announcement by Defence Minister Richard Marles that the government will invest an extra $50.