Chinese and Australian Aid in the Pacific: Which is More Effective at Developing Influence?

In 2022, China and Solomon Islands signed a security deal allowing for the Chinese navy to potentially use Honiara’s ports. In that same year, Beijing attempted to author a region-wide security pact with ten Pacific Island Countries. These moves signalled a new strategic reality in the Pacific—China had arrived as a power with intent to shape international cooperation in the region. Those same moves reflected another reality—Australia’s place in the Pacific as the security partner of choice was now contested. This paper examines aid as a theatre of contest in the Pacific, and compares the approaches of China and Australia for developing influence in Pacific Island Countries. I argue that China’s focus on infrastructure has achieved significant soft power gains and resulted in regional alignment with Beijing’s strategic goals. I also suggest that Australia’s multi-modal aid practice is struggling to secure its strategic aims and a recalibration of Australian aid funding is needed to meet the needs of Pacific Island Countries. Using population surveys conducted throughout the Pacific, this paper reveals the extent of awareness and affability towards Chinese aid in the Pacific. The results contain timely lessons for Australia if it wishes to remain the region’s partner of choice.