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

China's Record $86 Million Grant to Vanuatu

China has offered Vanuatu a historic $86 million grant aimed at renovating key government buildings, including the prime minister’s office. This move strengthens Beijing’s influence as Vanuatu considers whether to sign a security agreement with Australia.

Context of the Grant

The grant reflects China's efforts to counter the Albanese government’s push to limit Chinese influence in the Pacific region. It specifically targets support for the Vanuatu government amidst stalled talks around a proposed security pact with Australia.

Background on the Security Deal

In September, Australian Prime Minister Anthony Albanese visited Vanuatu but returned without an agreement. The expected Nakamal agreement would have given Australia a veto over Chinese investments in Vanuatu’s critical infrastructure in exchange for $500 million in project funding.

"Prime Minister Anthony Albanese left Vanuatu empty-handed after a one-day trip where he had expected to sign the Nakamal agreement – a security deal that would grant Australia a veto over any Chinese investment in Vanuatu’s critical infrastructure."

This grant signals China's intent to maintain a strong foothold in the region despite Australia's diplomatic efforts.

Subscription Offer

Subscribers can gift five articles each month to others, staying updated on important global topics.

"Gift 5 articles to anyone you choose each month when you subscribe."

Summary: China’s $86 million grant to Vanuatu aims to enhance Beijing’s regional influence as Port Vila delays signing a security pact with Australia.

more

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

More News