Washington commits millions of dollars at last week’s regional leaders’ forum in Palau, but experts say it will not be that simple
3-MIN READ3-MINCao Jiaxuanin BeijingPublished: 7:00pm, 8 Sep 2026The United States is stepping up its presence in the South Pacific with new funding and a reinforced diplomatic footprint, as its competition with China intensifies across the region.Yet the effectiveness of the push is tempered by Washington’s deep cuts to its main overseas aid agency, leaving doubts about the consistency of US commitment among Pacific leaders, according to analysts.The Pacific island nations are unlikely to frame their foreign relations as a simple choice between the two. Instead, they are expected to navigate the great power rivalries with a strategic flexibility consistent with their long-held practice of hedging, according to observers.
Washington’s pledge of US$150 million included US$60 million to help island nations through the energy crisis with expanded fuel storage and stronger power grids. The remainder, from Australia, will mainly be used to combat drug smuggling through greater aerial surveillance and law-enforcement training.
In a parallel move, Washington and Wellington pledged US$50 million and NZ$17.5 million, respectively, to upgrade a former World War II port in the Cook Islands. In response, Beijing said that cooperation should “safeguard regional peace and stability”.
