China, Russia challenging American values: Trump

President Donald Trump today said that "rivals" like China and Russia are challenging America's interests, economy and values.

"As we rebuild America's strength and confidence at home, we are also restoring our strength and standing abroad. Around the world, we face rogue regimes, terrorist groups, and rivals like China and Russia that challenge our interests, our economy, and our values," Trump said in his maiden State of the Union Address.

"In confronting these dangers, we know that weakness is the surest path to conflict, and unmatched power is the surest means of our defence," he said and asked the Congress to end the dangerous defence sequester and fully fund the military.

"As part of our defence, we must modernise and rebuild our nuclear arsenal, hopefully never having to use it, but making it so strong and powerful that it will deter any acts of aggression,” he said.

"Perhaps someday in the future there will be a magical moment when the countries of the world will get together to eliminate their nuclear weapons. Unfortunately, we are not there yet,” he said.

Trump said last year he pledged that he would work with US allies to extinguish ISIS from the face of the Earth.

"One year later, I am proud to report that the coalition to defeat ISIS has liberated almost 100 per cent of the territory once held by these killers in Iraq and Syria. But there is much more work to be done. We will continue our fight until ISIS is defeated," he said.