China unveils record $86m gift to sink Albanese’s Pacific push

China Offers Record $86 Million to Counter Australian Influence in Vanuatu

China has committed a record $86 million grant to Vanuatu, aimed at upgrading key government buildings, including the prime minister’s office. This investment is seen as a strategic move to strengthen Beijing’s influence as Port Vila contemplates a security pact with Australia.

Background of the Security Deal

In September, Australian Prime Minister Anthony Albanese visited Vanuatu but left without securing an agreement. He had planned to sign the Nakamal agreement, a security deal that would allow Australia veto power over any Chinese investment in Vanuatu’s critical infrastructure. In exchange, Australia promised $500 million in funding for development projects.

Strategic Impact

China’s generous grant signals its intent to counter Australia’s efforts to limit Chinese influence in the Pacific region. The funding for renovations aims to reinforce China’s ties with Vanuatu’s government at a crucial moment of decision regarding the security agreement.

“The grant to Vanuatu includes renovating the prime minister’s office and strengthens Beijing’s hand as Port Vila weighs signing a security deal with Australia.”

Allowing China this level of influence could shift the balance of power in the Pacific, challenging Australian ambitions in the area.

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Australian Financial Review Australian Financial Review — 2025-11-07

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