China–Taiwan diplomatic competition and the Pacific Islands

Abstract

China and Taiwan have become important actors in South Pacific affairs due to their diplomatic rivalry. Securing the diplomatic recognition of the Pacific Islands countries is expensive for China and Taiwan. There are limits to what the rivals are willing to spend, and they attempt to reduce costs. This dynamic shapes how Taiwan and China engage Pacific Islands politicians. It also motivates their high level official visits to the region, and how they engage South Pacific regional organizations. Despite criticisms that China–Taiwan rivalry corrupts and destabilizes the South Pacific, the issue of whether China and Taiwan's diplomatic rivalry has been beneficial or detrimental to the region remains contentious. China and Taiwan appear to have recently called a truce in their decades-old rivalry. This tacit agreement is still tentative, and the involvement of China and Taiwan in the region has yet to change significantly. However, Taiwan has reportedly begun to reduce funding, and is likely to reform its aid delivery in order to satisfy demands from the South Pacific region's dominant power, Australia, and to improve its image as a humanitarian aid donor. China is also likely to reduce funding while the truce holds. However, China considers its ties with South Pacific governments more important than responding to Australian pressure, and is unlikely to reform its South Pacific aid programmes as a result of the diplomatic truce.