US-China Rivalry Intensifies in Pacific Region

The Pacific Islands are increasingly pivotal in a geopolitical contest between China and the U.S., as both powers vie for control over maritime routes, deep-water ports, and other strategic assets, a situation referred to as a new 'Great Game' by the Lowy Institute. The region's strategic location, rich resources, and key shipping lanes amplify this rivalry, with China expanding its influence through development finance, infrastructure projects, and diplomatic outreach, while the U.S. and its allies, notably Australia, work to maintain their presence. The competition has transformed Pacific Island nations into diplomatic 'price-setters', leveraging the rivalry to maximize development benefits, although it raises concerns about governance and transparency. Additionally, the Pacific is grappling with the impacts of climate change and economic recovery post-COVID-19, complicating the efforts of local leaders to navigate this tense geopolitical landscape. The report emphasizes that the strategic focus on the Pacific may challenge the region's stability and governance as external powers engage more intensely. Overall, the situation reflects a significant shift in international attention towards the Pacific, with local nations at the center of these competing interests.