China has been ramping up its efforts to increase influence in Pacific island nations by providing aid and infrastructure funding in recent years, according to a new report by the Lowy Institute. Despite cutting aid during the Covid pandemic, China has seen a resurgence in commitments and project funding in the region.
Although Australia remains the largest donor in the Pacific, China has become the second-largest bilateral donor, with US funding closely trailing behind. In 2022, China spent $256 million, a significant increase from previous years. However, there has been a noticeable shift in China’s approach, with more targeted aid to specific Pacific states like Solomon Islands and Kiribati, which have close ties with Beijing.
The report also highlights a decrease in Chinese funding to Papua New Guinea following the country’s security agreement with the US in 2023. This shift in Chinese aid strategy indicates a more politically motivated approach to building influence in the Pacific region.
Overall, the report suggests that China’s renewed efforts in the Pacific demonstrate a more competitive and targeted model of engagement, signaling Beijing’s ambition to increase its presence and influence in the region. Despite Australia’s continued dominance in aid funding, China’s growing investments in infrastructure and development projects are reshaping the geopolitical landscape in the Pacific.
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