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Al Jazeera
Al Jazeera
Business
Ian Neubauer

In Solomon Islands, Australia’s largesse faces China challenge

Australia is facing questions about the limits of its economic diplomacy in the South Pacific after the Solomon Islands announced a new security pact with China [File: Darren England/EPA-EFE]

When the Solomon Islands, an impoverished nation located 2,000 kilometres (1,200 miles) east of Australia, announced the drafting of a new security deal with China late last month, Australian officials warned the move could undermine security in the South Pacific and manifest Canberra’s long-held fears of a Chinese military base in its back yard.

As the region’s largest aid donor – Australia last year spent a record 1.7 billion Australian dollars ($1.3bn) in development assistance in the South Pacific, as well as billions more on security, health, logistics and telecommunications in the Solomon Islands – Canberra could have imposed economic penalties to pressure Solomon Islands Prime Minister Manasseh Sogavare to rethink the deal.

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