Summary
Australia and Nauru signed a security treaty requiring Nauru to consult Canberra before entering security or infrastructure agreements with other nations, effectively limiting Chinese influence.
In return, Australia will provide AUD 100 million over five years and ensure banking access for the island nation, addressing issues caused by Western banks withdrawing.
The treaty follows China’s increasing presence in the Pacific, including agreements with Kiribati and the Solomon Islands, and Nauru’s recent shift from Taiwan to China diplomatically.
Australia frames the deal as bolstering regional security and stability.
Because China wants to dominate this region and recently signed a secret military pact with the Solomon Islands, for example:
https://apnews.com/article/china-solomon-islands-us-taiwan-pacific-dc2e984ec5045060524c644ebf62b910
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