China has been ramping up its efforts to build influence in Pacific island nations through aid and infrastructure funding, according to a new report by Australia’s Lowy Institute. Despite cutting back on aid during the Covid pandemic, China has increased its commitments in recent years, with a focus on major infrastructure projects.
While Australia remains the largest donor in the region, China has surpassed the US as the second-largest bilateral donor. In 2022, China spent $256 million, a 14% increase from three years earlier. The US spent $249 million, trailing closely behind.
The report highlights a shift in China’s approach to aid in the Pacific, with a more targeted focus on friendly nations such as Solomon Islands and Kiribati. These countries have received investments in schools, roads, and government vehicles after cutting ties with Taiwan in 2019. In contrast, Papua New Guinea, which signed a security agreement with the US in 2023, has seen a decrease in development funding from China.
Overall, the report suggests that China’s resurgence in aid and infrastructure funding in the Pacific demonstrates its renewed efforts to build influence in the region, posing a challenge to traditional partners like Australia and the US. The findings underscore the growing competition for influence in the Pacific and the shifting dynamics of international aid in the region.
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