Australia has signed a A$1bn (US$717m) contract with South Korean defence company Hanwha that will strengthen ties between two US allies but risks sparking China’s opposition.
The agreement to buy 30 self-propelled howitzers and 15 armoured ammunition resupply vehicles, is the biggest defence contract sealed between Australia and an Asian country. It was announced during President Moon Jae-in’s state visit to Australia, the first visit by a foreign leader to the country since the onset of the coronavirus pandemic.
“Our Comprehensive Strategic Partnership with the Republic of Korea is underpinned by our joint commitment to defence and security co-operation,” Scott Morrison, Australia’s prime minister, said on Monday.