With China rivalling, Australia seals $325 mn security & economic deal with Vanuatu in the Pacific

With China rivalling, Australia seals $325 mn security & economic deal with Vanuatu in the Pacific

Australia and Vanuatu on Wednesday agreed a A$500 million ($326.50 million) deal to strengthen economic and security ties between the two countries, amid increasing competition from China, the Pacific island nation’s largest external creditor.

This handout photo released on August 13, 2025 by Australia’s Department of Foreign Affairs and Trade (DFAT) shows Australia’s Deputy Prime Minister and Minister for Defence Richard Marles (L) presenting a shoe to Vanuatu’s Prime Minister Jotham Napat (C), as Vanuatu’s Deputy Prime Minister of Vanuatu Johnny Koanopa (R) reacts on the Island of Tanna in the South Pacific nation of Vanuatu. AFP PHOTO