Australia Locks in Nauru Alliance Amid China Influence

Australia signed a $104 million economic and security treaty with Nauru, offering budget support and security assistance. This deal prevents China from accessing Nauru's security infrastructure, following similar agreements with Tuvalu. Australia's strategic moves aim to counter Chinese influence in the Pacific Islands.

Australia has cemented a new economic and security alliance with Nauru, pledging A$100 million in budget aid over five years, alongside A$40 million aimed at bolstering security in the strategically pivotal Pacific island nation. The initiative is part of a broader geopolitical strategy to limit China's influence in the region.

This agreement follows a precedent set with Tuvalu, effectively blocking Beijing from establishing security ties in these territories. The treaty also permits Australia to veto Chinese engagements in critical sectors like security, banking, and telecommunications within Nauru. Defence Minister Richard Marles noted Australia's first successful test-fire of a Tomahawk cruise missile to enhance long-range strike capabilities.

The treaty further ensures Nauru's access to essential banking services and sees the Commonwealth Bank of Australia become the exclusive provider. This move fills the void left by the anticipated exit of Bendigo and Adelaide Bank next year. Meanwhile, Australia continues to influence Nauru's economic trajectory while addressing its unique regional development challenges.

(With inputs from agencies.)