China will be left "outraged" by the newly announced defence pact between Australia, the US and UK, 9News political editor Chris Uhlmann says.
He was speaking on Today just after Prime Minister Scott Morrison spoke with US President Joe Biden and British Prime Minister Boris Johnson to announce the AUKUS security agreement.
The move by the three traditional allies appears designed to counter China's rising power in the Indo-Pacific region.
"No doubt we will be hearing from China and no doubt China will be outraged about this, but it does show there is an enormous strategic dance on at the moment," Uhlmann said.
"It's an extremely dangerous one.
"You acquire new capability, that's one action and you expect a reaction from somewhere else."
Under the new security deal, Australia will build a nuclear-powered submarine fleet – seen as a game-changer in the Indo-Pacific security environment.
Uhlmann said the new defence pact further strains Australia-China relations after our exports were hit with trade sanctions imposed by Beijing.
"We're already in China's bad books … but it will be fascinating to see how China responds to this," he said.
Building a new fleet of Australian submarines will also mean a big rise in defence spending.
AUKUS is expected to see Australia scrap the $90 billion deal with French submarine maker Naval Group that Australia struck in 2016.
"Australia is arming up. That doesn't come cheap. This will at least double our defence spend," Uhlmann said.
"The government will say these are dangerous times. It wants a peaceful Pacific. It says this is all about peace.
"That may not be the way it's read elsewhere."