BEIJING, July 31. /ITAR-TASS/. China, the United States and Australia will hold their first joint military exercise this year, Chinese Defence Ministry spokesperson Geng Yansheng said on Thursday.

The exercise will become a major milestone in defense cooperation between the three countries, he said.

Earlier this month, when Fan Changlong, vice-chairman of China's Central Military Commission, visited to Australia, the two countries announced they would hold a joint military exercise codenamed Kowari with US forces. China is now making preparations for the event.

China and the United States have stepped up their contacts this year as both are seeking to foster better military-to-military cooperation.

Beijing is now taking part in the Rim of the Pacific (RIMPAC), a major US-led naval exercise in the Pacific.