Australia has inked a deal with Nauru that could lock China out from any security arrangement with the island nation.
Screenshot of X post by Penelope Wong, Australia's minister for Foreign Affairs.
© Photo : SenatorWong
What does the five-year deal contain?
Canberra will provide Nauru, which uses Australian currency, with AUD $100 million (about US $63.8 million) in budget support.
AUD $40 million (US $25.5 million) will support the Nauru’s policing and security, including “through support for recruitment, training and infrastructure.”
The Commonwealth Bank will set up a branch in Nauru following the pullout of another Australian financial institution, Bendigo, next year.
In return, the island nation pledges that its critical infrastructure "shall not be used by any third party for security purposes."
Canberra will be able to veto any engagements by third countries in Nauru's "security and key critical infrastructure sectors," such as telecommunications, banking, or cybersecurity.
The deal comes amid a spiraling battle for influence in the Pacific between the US/Western nations and China.
Australia acquired a similar veto over any security arrangement between the island nation of Tuvalu in the Pacific Ocean and China after the signing of the Falepili Union Treaty last year. The US and its allies received an unpleasant surprise when Nauru switched diplomatic recognition from Taiwan to China in January 2024, formally restoring diplomatic relations with Beijing. The Tuvalu deal followed a security agreement struck between China and the Solomon Islands in 2022 that irked the West, fueling Washington's push to maintain hegemony in the South Pacific.