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CRS   INSIGHT


Australia and New Zealand React to China's Growing

Influence in the South Pacific

July 26, 2018 (IN10938)




Related  Author


   *  Buce  Vaughn




Bruce Vaughn, Specialist in Asian Affairs (bhaughnt.crs ic.go , 7-3144)

Overview

The July 24, 2018, Australia-United States Mi         MIN)  Joint Statement points to deepening engagement
[between the United States and Australia] in the Indo-Pacific. Canberra and Wellington are increasingly responding to
Chinese influence operations in the Pacific region, as demonstrated by a number of recent actions, including Australia's
passage of new foreign interference legislation; announcement of an possible new Australia-Vanuatu security
agreement; New Zealand's adoption of a new Strategic Defence Policy Statement; steps toward a new Pacific Islands
Forum  security agreement; and increased aid from Australia and New Zealand to Pacific island states. In addition,
Australia is boosting its defense budget, both Australia and New Zealand are making new military procurements, and
Australia, New Zealand, and the United States held an inaugural Pacific Security Cooperation Dialogue in June 2018 to
discuss a wide range of security issues and identify areas to strengthen cooperation with Pacific Island countries on
common  regional challenges. A review of these developments may assist Congress as it exercises oversight of the
Administration's Indo-Pacific strategy.

Rising Concern over China's Influence

                                                            , increasing its aid to the region, and reportedly
attempting to develop a militar. resence in

In responding to reports of China's efforts to establish a naval presence in Vanuatu, Australian Prime Minister Malcolm
Turnbull stated We would view with great concern the establishment of any foreign military bases in those Pacific
island countries and New Zealand Prime Minister Jacinda Ardern stated that we take a strong position in the Pacific
against militarization. Chinese aid to Pacific island states, as tracked by the Lowy Institute Mapping Foreign
                             , increased significantly from 2006 to 2016, with cumulative aid commitments totaling
$1.78 billion over that period. China also reportedly plans to hold a aummit ith Paific Ilan l r in Papua New
Guinea in November 2018, ahead of the APEC Forum.

Revelations regarding China's attempts to influence Australia's domestic politics, universities, and media, which are