Development Assistance and Geopolitics in Australia-China-Taiwan Relations

Abstract

The development assistance programs of Australia, China and Taiwan impact each other’s geopolitical interests in the South Pacific region. This “aid triangle” has recently undergone a significant transformation. Previously, the interests of Australia and China aligned in competing against Taiwan for political influence in the region. However, since 2008, China-Taiwan relations have warmed and their aid contest in the South Pacific has been largely put on hold. This has ameliorated Taiwan’s conflict with Australia, and the two countries have increased their development assistance cooperation. However, China’s role in undermining Australia’s policy towards Fiji, and the global deterioration in China’s relations with a US coalition (including Australia), have potentially increased the competitive aspects of the Sino-Australian side of the triangle.