China, US Pledge Funds for Pacific Islands Ahead of Regional Leaders' Annual Meeting

A Chinese corporation has pledged A$1 billion (S$835 million) to Nauru, the Pacific Islands nation with a population of 12,000, said on Aug 12, as major powers including the US push for influence in the region.

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SYDNEY -

The announcement comes ahead of a meeting of foreign ministers of the Pacific Islands Forum regional bloc on Aug 14 and the region's top political meeting in September.

The Solomon Islands, which hosts the annual leaders' meeting and is China's biggest ally in the region, made the surprise decision to block 21 donor countries, including China and the US, from attending after pressure from Beijing to exclude Taiwan.

The US expressed disappointment with the move but on Aug 12 made its own US$60 million (S$77.2 million) pledge to the region under a 2022 treaty, as news of the Chinese agreement with Nauru was made public.