The security and stability of the Indo-Pacific region could be put at risk if the United States is not properly engaged, a new report has warned.
The latest foreign policy white paper, to be launched by Prime Minister Malcolm Turnbull on Thursday, examines changes in the region as China's power grows and US President Donald Trump charts a new "America first" course.
The blueprint - the first of its kind since 2003 - says the alliance with the US is central to Australia's approach to the Indo-Pacific.
"Without strong US political, economic and security engagement, power is likely to shift more quickly in the region and it will be more difficult for Australia to achieve the levels of security and stability we seek," it says.
The government aims to step up co-operation with the US military, mainly through what are known as the United States Force Posture Initiatives - an annual six-month rotational deployment of US Marines and rotations of US Air Force aircraft and crew.
Australia is also buying 73 F-35A Lightning II aircraft, the first of which is due to come into service next year.
As well, the US is being urged to develop a comprehensive economic strategy for Asia, which the blueprint says will be "as important as the United States' extensive security engagement".
China should exercise its power "in a way that enhances stability, reinforces international law and respects the interests of small countries and their right to pursue them peacefully", the paper says.
"Australia will encourage the United States and China to ensure economic tension between them does not fuel strategic rivalry or damage the multilateral trading system."
Over time, there would be huge benefits in bringing the US and China in a region-wide free trade agreement, which could reduce this economic tension and spread the benefits of growth.
