Australia to Reshape Military Amid Growing U.S.-China Rivalry

​SYDNEY—A wide-ranging review of Australia’s military found that the key U.S. ally needs to quickly overhaul its armed forces and focus more on capabilities such as long-range missiles, amid concerns that rising tensions between the U.S. and China could increase the chance of a conflict in the region.

Australian officials said they agreed with the review’s conclusion that the country’s military isn’t fully fit for purpose in the current strategic environment. The defense industry minister, Pat Conroy, said the revamped army will eventually be able to fire weapons that can hit targets some 300 miles away, versus 25 miles now.