New Zealand troops are participating in military war games off the coast of Australia.
The Talisman Sabre exercise is hosted by the Australian military and supported by the United States and involves more than 30,000 people.
It is the third time New Zealand has been involved and the war games test combat readiness, as well as war-fighting skills in a controlled environment.
New Zealand's military has sent more than 600 troops from the three services - Army, Navy and Air Force.
Twenty-seven light armoured vehicles, three NH90 helicopters and the HMNZS Canterbury will be involved.
The games have caught the attention of the Chinese, with one of their ships watching closely from international waters.
NZDF Brigadier Jim Bliss said the event was running smoothly, despite the Chinese attention.
"You've seen in some media coverage out of Australia, it's in international waters.
"It's well known that it is in the local area. I suppose it just puts a new complexity or a new spin on the activity."
Brigadier Bliss said it was an important chance to work with other the country's allies.
"We have a mindset and we have a culture around how we operate that allows us to be very effective in the battle space," he said.
"So that provides I think a lot of reassurance to our allies that they can call on the New Zealand troops to be a real value add in any kind of coalition environment."
Mr Bliss said some New Zealand troops struck down with flu-like symptoms were recovering well.
Talisman Sabre ends on 25 July.