China has established itself as the second biggest aid donor in the South Pacific, committing more than $6bn to projects over the past seven years, as Beijing seeks to expand its influence in the region.
But new figures show that recipient countries have received less than a fifth of the promised aid from Beijing, which has mainly been directed towards flagship projects, such as road building or industrial facilities. Such infrastructure projects are often designed to enhance China’s status and facilitate commerce but can take time to deliver and are often in the form of concessional loans that must be paid back, according to a report by the Lowy Institute think-tank.
Australia remains the largest aid donor in the South Pacific committing $6.72bn between 2011 and 2018 and spending $6.58bn. New Zealand, the US and Japan are the third, fourth and fifth largest donors respectively.