Australia is in talks with Washington to manufacture US-designed ballistic missiles on home soil, as political tension with China and the West continue to escalate.
The US military is also looking to store a stockpile of munitions and defence equipment at bases in the Northern Territory in what the acting US ambassador Mike Goldman described to The Australian as 'a forward deployment'.
Mr Goldman said closer cooperation 'just makes sense' given the 'new geostrategic context' facing the region.
Australia is in talks with Washington to manufacture US-designed missiles on home soil, as political tension with China and the West continue to escalate. Pictured: A US-made MX intercontinental ballistic missile