Australia needs the most "potent" defence force amid China's military build up, which is the single biggest factor shaping regional security, Acting Prime Minister Richard Marles says.
Mr Marles, who is also the defence minister, reaffirmed the call for calm and de-escalation amid the security crisis in the Taiwan Strait, but warned of the deteriorating environment.
"We're completely aware of the military build up that China has engaged in and ...it's not been done in a way which gives any sense of reassurance to its neighbours in the region," he told ABC radio on Tuesday.