Vanuatu has been a major destination for Australian tourists, and tourism investment. I won't be at all surprised if that is quickly replaced by Chinese tourists – the Chinese investment is already happening!
The other country I need to refer briefly to is Kiribati in the Central Pacific, and relatively close to the Hawaiian Islands. Kiribati is one of China's strongest allies in the region, something that the United States is reportedly, and rightly, concerned about.
As I wrote some time ago, China is looking at restoring a disused world war two airport in the middle of the Kiribati Islands group. Given the very small local population, and total absence of industry one has to be suspicious as to China's intentions!
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China has been active in Timor Leste, to Australia's immediate north. Several thousand Chinese have settled in Timor Leste since it gained independence in 2022 and have become an important part of the small nation's economy.
China has had a relatively small but increasingly visible presence – including financing the construction of the new Presidential Palace!
There really is a common "theme" in all the countries in our immediate region of strategic interest. China's presence and influence are growing – and Australia's response is making little if any difference.
Belt and Road, and other debt laden initiatives from China are having a massive impact on the economies, and budgets, of our immediate neighbours. It was not said in the joint announcement by Australia, the UK and the US, but Belt and Road and the wider PRC influence is of massive concern and forms a key reason for the new alliance.
We have to hope that a strong and better resourced alliance with the United States and with the United Kingdom (AUKUS) does not just focus on a nuclear submarines program, important though it is.
The new alliance need to have an urgent, forensic look at the true extent of China's influence in our immediate region and learn from foreign policy mistakes that have really benefited China's expansion.
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As I have written on any number of occasions, Australia has to go "bigger and bolder" in our immediate region. Our new strategic agreement ought to be the opening to begin doing so.
Time is NOT on our side. China will be fully aware that AUKUS is targeting its growing influence in our immediate region. We can reasonably expect its Belt and Road and other expansionary moves to escalate.
Any suggestion that we have been successful in not just countering China's influence, but rebuilding our own, is simply not supported by the facts!
A larger, more powerful and better resourced – and hopefully focussed – alliance is probably our last chance to do much better!
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