Australia’s support to Pacific surges as China focuses on ‘friendly’ states, aid map shows

Lowy Institute report finds Canberra has become leading source of loans to region while Beijing’s financing is ‘strategically targeted’

Australia dramatically increased its overall support to the Pacific in 2021, while Beijing is targeting its development financing to “the most China-friendly Pacific island states”, the latest Lowy Institute Pacific Aid Map shows.

The map, released on Tuesday, also revealed that at a time of elevated debt sustainability risks in the Pacific, Australia has become the leading source of loans and contributed to a surge in infrastructure support.