Australia is providing 4.6 billion Australian dollars to support the construction of nuclear-powered submarines with the UK, following a defence and security pact signing. The deal aims to counter challenges such as China's activities in the South China Sea. UK Defence Minister Grant Shapps emphasized the submarines' importance in a dangerous world. The agreement will boost production capacity in the UK and Australia, with submarines primarily from UK design and US weaponry. Australia will acquire at least three US nuclear submarines under the AUKUS agreement.