Quicktake

Why US and China Compete for Influence With Pacific Island Nations

Competition is heating up between China and the US in the southern Pacific, with each seeking to build influence among island nations that haven’t received much superpower attention since World War II. The stakes rose in 2022 when the Solomon Islands signed a security accord with Beijing — a first for the region — raising fears in Australia and New Zealand, both US allies, about a possible Chinese military base in the neighborhood. That has prompted a flurry of regional diplomacyBloomberg Terminal and pledges of aid and cooperation in areas including climate change, as well as the appointment of new envoys, the opening of new embassies and invitations to the White House. Both the US and China sent high-level delegations to the region’s most important annual political forum in November.

There are some 14 independent Pacific island nations located mostly around or below the equator. Only one, Papua New Guinea, has a population greater than 1 million. Apart from the Solomons, others include Vanuatu, Samoa and Kiribati. Their combined gross domestic product of roughly $36 billion is about that of the US state of Vermont. Some island countries describe their foreign policy as “friend to all, enemy to none,” but they also have long-running ties to the US and its allies in the region, Australia and New Zealand.