The U.S. State Department unveiled its proposal to reduce licensing requirements for transferring military equipment and sensitive technology to Australia and Britain as part of the AUKUS defense project.

AUKUS, formed in 2021 to address shared worries about China's growing power, would involve Australia acquiring nuclear-powered attack submarines, among other items of defense cooperation. But the sharing of closely guarded technology is governed by strict U.S. International Trafficking in Arms Regulations (ITAR).

Under the rule change proposed by the U.S. Department of State on Tuesday, the Department's Directorate of Defense Trade Controls will no longer be required to license or approve defense articles, which will reduce some administrative burdens for companies seeking to make defense products in Australia or the U.K..