China boosts aid to Pacific island nations as competition with US intensifies

China has increased its aid and infrastructure funding to Pacific island nations, marking a "resurgence" after a decline during the Covid pandemic, according to a report from Australia’s Lowy Institute. The report highlights a shift in China's approach, focusing on targeted aid to select countries rather than broad spending. In 2022, China spent $256 million, a nearly 14% increase from 2019, while US funding was $249 million. Australia remains the largest donor at $1.5 billion, but China's funding now closely follows. Key recipients include the Solomon Islands and Kiribati, which have strengthened ties with Beijing after cutting relations with Taiwan.