China’s declining aid to the South Pacific is increasingly targeted toward its political allies in the region as appetite there for Chinese credit declines and competition grows with the U.S. for influence, an independent Australian think tank reported Tuesday.
Chinese overall economic influence among the 14 aid-dependent island nations in the region is losing ground because of better loan deals being offered by U.S. allies, especially Australia, the Sydney-based Lowy Institute said in its annual analysis of aid to the region.
