China’s Challenge to Australia’s Backyard

Photo Credit: Image generated by AI using ChatGPT

In the last month, Australia has stepped up its diplomatic ties with other Pacific Island nation states. The Aussies have been seen as a regional power in the past but several island nations have experienced neglect. Over several years at the Pacific Islands Forum (PIF), the Australian government made a series of blunders where they did not attend talks or seriously discuss climate change issues that are most impactful to smaller island nations. It was an opening that China was willing to exploit to build infrastructure and attempt to shape security relationships. Australia noticed that its neighbours were looking elsewhere for development and has quickly tried to rectify its relationships in the region.

In 2018, the Chinese and Vanuatu governments held preliminary discussions about building a permanent Chinese military base. The location of this base would be 1500 miles off the coast of Australia. There were many denials of the report but it was sufficient enough for the Australian government to start taking the security in the region more seriously. There are also reports that Vanuatu has received hundreds of millions of dollars for development by the Chinese government. Specifically, China has built a wharf “that could conceivably be used for military purposes” which could become a geopolitical problem “if Vanuatu has problems repaying the loan.” If China has a launchpad in such close proximity to Australia, the repercussions could be disastrous for the region. 

China is particularly interested in building up relationships in the Pacific for geostrategic reasons. The Center for Strategic and International Studies (CSIS) highlights their ambitions stating that the Chinese need the Pacific islands for “access to much-needed resources such as fish stocks, timber, and critical minerals to geostrategic objectives such as displacing the United States in its near region and complicating U.S. and allied contingency planning.” Arranging treaties directly with the Pacific Island nations has raised concerns for Canberra as maritime development for China is high on the agenda. Some of these deals include initiatives such as partnering on deep-sea mining to building port infrastructure. Agreements like these have implications for the region, especially in the ecological and security environments.

Undersea internet cables have become a significant issue in the Pacific. Tourists who visit Fiji or Tahiti will want to be able to connect to WiFI and Instagram their #BeachLife holiday adventures. With tourism being a major economic lifeline for these countries, the necessity of underwater cables is crucial to remain competitive. Huawei Marine attempted to organise an underwater cable project with the Solomon Islands but Australia recognised this as a security threat in 2019 To shut out China from building internet infrastructure that they would have control over decided to fund the Coral Sea Cable system themselves. Internet access is not only useful for economic development but is considered critical infrastructure. The recent Nakamal Agreement signed in June 2026 “says that Vanuatu will ‘consult Australia on proposed third party engagement in Vanuatu's critical infrastructure’, which must remain ‘free from militarisation, any form of foreign interference or unauthorised access’.” This agreement is a significant win for Canberra to maintain dominance in the region as it has stalled the Namele Agreement that China and Vanuatu worked on earlier this year, which Beijing has yet to approve. 

China argues that they simply want to provide assistance in developing Pacific Island nations. This is the same justification that they have used in Latin America and Africa through the Belt and Road Initiatives. The Pacific Islands claimed that they are in favour of receiving competitive offers for economic development, especially since they had perceived waning interest from Australia. Although the interest from Beijing is enticing, concerns about missile testing and infringement on territorial waters has raised questions about threats to maritime commerce and sovereignty for the Pacific Islanders. These security threats are of interest for Canberra as it is happening too close for comfort, which could destabilse the region. Due to numerous geopolitical concerns that are distracting previously reliable partners, it seems as though Australia recognises the risk of losing its regional influence. By using its diplomatic capacities to regain the trust of its neighbours, Australia is on the frontline of minimising the influence of China in the Oceania region.