Australia will bolster its defence force, provide more funding for its spies and help exporters find new markets in a massive push back against China.
Canberra-Beijing relations have deteriorated since last year when Prime Minister Scott Morrison called for an independent inquiry into the origins of coronavirus which was identified in the Chinese city of Wuhan.
China has blocked key Australian exports including coal, seafood, beef and barley - and has been blamed for a series of ongoing cyber attacks on Australian institutions.
Some analysts have warned there could be war in the Pacific region in the next five years if China tries to reunify Taiwan by reclaiming the self-governing island of 25 million people.