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Australia, the UK and US have sealed a new security pact

'AUKUS' aims to counter China's position in the South China Sea.

The Australian government has decided to scrap their French submarine deal for a new Defence pact.

"The future of the Indo-Pacific will impact all our futures... to make these challenges and develop security we must take our partnership to a new level..." The words of Australia's Prime Minister, Scott Morrison as he, his UK counterpart, Boris Johnson and US President Joe Biden last night announced the formation of a new security partnership.

First on the list is to acquire nuclear powered submarines for Australia's navy. It's all in a bid to counter the growing military might of China in the Indo-Pacific. Beijing has condemned the partnership with China's embassy in Washington accusing the three allies of having a Cold War mentality.

So what is the idea behind this working group - what does it mean? Newsday spoke to James Acton, co-director of the Nuclear Policy Program at the Carnegie Endowment for International Peace.

(Photo: In this photo taken on October 12, 2016, a Royal Australian Navy diesel and electric-powered Collins Class submarine sits in Sydney Harbour. Australia awarded French contractor DCNS the main contract in April 2016 to design and build its next generation of submarines to replace the aging Collins Class. Credit: Peter Parks / AFP)

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