Australia will spend A $7 billion to buy advanced long-range missiles from the United States

Australia will spend A $7 billion to buy US-made SM-2 IIIC and SM-6 long-range missiles for the navy to strengthen its air and missile defence capabilities.

The SM-6 is the U.S. Navy's most advanced anti-aircraft missile, which can be used to intercept ballistic missiles and has also been used in ships and ground targets as well as air-to-air tests. The Australian Navy test-fired Raytheon's SM-6 missile from a warship during joint exercises with the United States in Hawaii in August.

Defense Minister Mark Mars said in a statement Tuesday that the SM-6 missiles will be deployed on the Australian Navy's Hobart class destroyers and future Hunter class frigates.

"With the SM-6 and SM-2 Block IIIC, our Navy will be able to engage sea, land and air targets at long range and provide terminal ballistic missile defence capabilities, enhancing the Australian Defence Force's ability to protect Australians and Australian interests," he said.

A review by the Australian government found that fierce competition between the US and China was shaping regional developments and that the rivalry between the two largest economies had a "potential for conflict".

In the wake of the report, Australia announced last year that it was prioritising the development of long-range precision strike capabilities and fortifying northern bases in its biggest defence overhaul since World War II.