SYDNEY • China is using „payday loan diplomacy“ to exert influence in the Pacific, the new US Ambassador to Australia has said, in comments that…
SYDNEY • China is using „payday loan diplomacy“ to exert influence in the Pacific, the new US Ambassador to Australia has said, in comments that threaten to inflame regional tensions.
The United States and its regional allies have been battling China for greater influence in the Pacific – a region that has votes at international forums like the United Nations and controls vast swathes of a resource-rich ocean.
The geopolitical competition has seen both China and the US increase foreign aid to the region in recent months, which the West says is needed to prevent the Pacific from falling into financial distress and becoming susceptible to diplomatic pressure from Beijing.
Late last year, US Vice-President Mike Pence accused China of ensnaring tiny island nations in foreign-aid „debt traps“.
The new US Ambassador to Australia, Mr Arthur Culvahouse, said Mr Pence’s criticism was not strong enough.
