China and Australia Vie for Influence in Pacific with Major Investments

A Chinese corporation pledges A$1 billion to Nauru as part of a strategic move to influence the Pacific region amid increasing global power contests. Meanwhile, the U.S. and Australia amplify their engagements with the Pacific Islands Forum, focusing on security talks and economic agreements.

A Chinese corporation has committed A$1 billion ($651.40 million) to Nauru, marking a significant investment in the Pacific Islands nation as global powers like the United States jostle for influence in the region.

This announcement precedes a key meeting of Pacific Islands Forum foreign ministers on Thursday and a subsequent top-level political gathering next month. Recently, the Solomon Islands, where China's influence is growing, barred 21 donor countries, including China and the U.S., from attending an event, succumbing to pressures from Beijing to exclude Taiwan.

In response, the U.S. announced a $60 million pledge to the Pacific, emphasizing ongoing strategic investments. Meanwhile, Australia has been conducting high-profile security talks with Pacific nations, aiming to curb China's expanding ties in the area. Australia's latest defense installations in Papua New Guinea further underscore this commitment.

(With inputs from agencies.)