Australia offers Solomon Islands US$173 million in grants to curb Chinese influence in Pacific
- The Solomons is one of a handful of nations that still recognise Taipei rather than Beijing
- But the impoverished South Pacific archipelago is being pressured to join up with China’s Belt and Road Initiative
Australia is to fund a A$250 million (US$173 million) grants programme for the Solomon Islands, according to reports Monday, as Canberra confronts a growing Chinese influence in the region.
Prime Minister Scott Morrison, in his first overseas trip since re-election two weeks ago, was to unveil the package amid talks with Solomons Prime Minister Manasseh Sogavare, Australian media said.
It came in a three-pronged Canberra initiative with Defence Minister Linda Reynolds and Foreign Affairs Minister Marise Payne highlighting Australia’s push for economic security in the region.
The grants programme, to cover a range of projects over 10 years, is designed to allow the Solomons to finance urgently required infrastructure.
Further funds will be used to help Solomon Islanders access work opportunities in Australia and an initiative to assist with football in the country.
The Solomons is one of a handful of nations that still recognise Taipei rather than Beijing. But with an economy hampered by declining resources, the impoverished South Pacific archipelago is being pressured to sever ties with Taiwan and join up with China’s multibillion-dollar Belt and Road Initiative.