China and strategic competition in a divided Pacific Islands region

Abstract

While China has increased its engagement with and investment in the Pacific Island region since the mid-2000s, few states there have the fiscal capacity to take advantage of the large infrastructure loans that Beijing has offered as part of its global Belt and Road Initiative. However, several large Chinese companies in the construction and telecommunications sectors are now well established in the Pacific Islands and are looking for more business. China’s activities have prompted other countries – including Australia, France and the United States – to increase their own participation in regional affairs, which was one of the factors that caused a significant dispute at the Pacific Islands Forum in February 2021