Australia is forming a new infrastructure partnership with the United States and Japan, amid rising concerns of Chinese influence throughout the Indo-Pacific.
The trilateral pact promises to mobilise investment in projects that drive economic growth, create opportunities and foster a "free, open, inclusive and prosperous" region.
The agreement is in direct competition to China's 'One Belt, One Road' infrastructure initiative, and is widely seen as an attempt by the US to offer smaller nations an alternative to Beijing.
Without making specific reference to China, US Secretary of State Mike Pompeo said overnight the Trump administration was seeking "partners, not domination" in the Indo-Pacific.
Trade Minister Steve Ciobo denied the three-way initiative was a challenge to China, saying it only added to various regional programs already underway.
"I think it's wrong to view these things as either/or. The fact is we can participate in and be part of all of the initiatives in the region," Mr Ciobo told Sky News on Tuesday.
"All of this, this broad sweep of initiatives in the region, is all about addressing the huge unmet demand for the provision of infrastructure throughout the Indo-Pacific region."
Trade Minister Steve Ciobo. Source: AAP
The trade minister said he was not bracing for any backlash from China.
"The fact is that we demonstrate consistently that Australia is very focused on making sure that we can help the least developed economies in our region to get onto a more economically sustainable footing," he said.
"This is also about opening a wealth of opportunities to Australian businesses."
Labor Leader Bill Shorten said the federal government was just playing catch up.
"Everyone knows that Australia has gone backwards in the Pacific under this government," he told reporters in Tasmania on Tuesday.
"It's long overdue to do something."
In a joint statement with officials from the US and Japan, Foreign Minister Julie Bishop said the partnership recognised more support was needed to enhance peace and prosperity in the Indo-Pacific.
"We share the belief that good investments stem from transparency, open competition, sustainability, adhering to robust global standards, employing the local workforce, and avoiding unsustainable debt burdens," it said.
"By working together, we can attract more private capital to achieve greater results."
Australia and China have signed a memorandum of understanding over the 'One Belt, One Road' initiative, but it has not been made publicly available.
