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Updated November 28, 2022
The Pacific Islands
Overview
additional COVID-19 assistance, and efforts to support
The Pacific Islands region in the Southwest Pacific has
infrastructure investment, bolster security cooperation and
emerged as an area of keen interest to major powers, largely
maritime protection, and improve digital connectivity and
due to the People’s Republic of China’s (PRC’s) expanding
cyber security in the region, among other aims. The summit
engagement in the region. The region has strategic
produced an 11-point multilateral agreement, the
significance for the United States and hosts key U.S.
Declaration on U.S.-Pacific Partnership.
military installations. Congressional considerations include
Geopolitical Context
bolstering diplomacy in the region, funding assistance in
The PICs are scattered over a broad expanse of ocean and
such areas as climate change, sustainable fisheries, and
divided among three sub-regions—Melanesia, Polynesia,
economic development, addressing security threats posed
and Micronesia (see Figure 1.) The United States has long
by China, and extending economic and other assistance for
held major economic and strategic roles in the Micronesian
the Freely Associated States (see below).
subregion, home to two U.S. territories (Guam and the
Some Pacific Island countries (PICs), such as Papua New
Northern Mariana Islands) and to the Freely Associated
Guinea (PNG) and Fiji, are relatively large with extensive
States (FAS)—Republic of the Marshall Islands (RMI),
natural resources; others are quite small, sitting on top of
Federated States of Micronesia (FSM), and Republic of
low-lying coral atolls, with limited economic prospects and
Palau—which have special economic and security ties with
high vulnerability to the effects of climate change and sea
the United States. U.S. territory American Samoa lies in the
level rise. PICs were among the first countries to ratify the
Polynesian subregion, where France has territories and
2015 Paris Climate Agreement. PIC leaders agreed on an
military bases. Australia and New Zealand maintain strong
expanded concept of security in the 2018 Boe Declaration
relations with much of the region, particularly in Melanesia.
on Regional Security, which states that climate change
remains “the single greatest threat” to the Pacific.
The PIF, which has its headquarters in Fiji, has 17
Over half
of the world’s tuna is harvested in the region.
members—13 PICs, two French “overseas collectivities,”
Many PICs
Australia, and New Zealand. The organization recently has
rely on fisheries, tourism, and remittances for revenue.
faced discord. In July 2022, Kiribati, which has
Although their remoteness helped most PICs to minimize
strengthened its relations with China in recent years,
Coronavirus Disease 2019 (COVID-19) infections, travel
formally withdrew. Kiribati President Taneti Maamau cited
and border restrictions have disrupted tourism and trade.
lingering misgivings over a PIF leadership dispute
In September 2022, the Biden Administration held the
stemming from 2021, although analysts are uncertain about
Pacific Islands Country Summit with PIC leaders in
other possible motivations.
Washington, DC. The meeting represented a culmination of
U.S. efforts to expand and deepen engagement in the region
Figure 1. The Pacific Islands Region and Subregions
that began during the Trump Administration. In 2019, the
State Department launched a new Pacific Islands regional
foreign assistance program, and committed a total of $300
million in new funding as part of its “Pacific Pledge” in
2019 and 2020.
In February 2022, Antony Blinken visited Fiji, the first U.S.
Secretary of State to visit the country in 36 years, and in
May 2022, Fiji became the first PIC to join the Indo-Pacific
Economic Framework. In July 2022, the U.S. government
announced plans to build new embassies in Kiribati, the
Solomon Islands, and Tonga, and to appoint a U.S. Envoy
to the Pacific Islands Forum (PIF), the region’s main
multilateral organization. Bills in the 117th Congress that
support these efforts include S. 4648 and S. 4650.
During the Pacific Islands Country Summit, the U.S.
Source: Congressional Research Service
government announced the U.S. Pacific Partnership
The United States and the Region
Strategy, the establishment of a Trade and Investment
Dialogue with the Pacific Islands, and $810 million in
U.S. Indo-Pacific Command, based in Hawaii, encompasses
“additional expanded programs” for the region, subject to
the Pacific Islands as part of its area of responsibility. The
congressional approval. It pledged increased funding for
U.S. military has air and naval bases on Guam and operates
fisheries, “urgent action” to address climate change,
the Ronald Reagan Ballistic Missile Defense Test Site at
Kwajalein Atoll in the Marshall Islands. The Department of
https://crsreports.congress.gov
The Pacific Islands
Defense is building a high-frequency radar system in Palau.
Belt and Road Initiative, which promotes PRC-backed
The U.S. military has ties with Fiji, PNG, and Tonga, the
infrastructure development. In May 2022, the PRC
only PICs with regular armed forces. The Biden
proposed a sweeping diplomatic, economic, and security
Administration’s Indo-Pacific Strategy (February 2022)
pact between China and the region that met resistance
states that the United States “will work with partners to
among some PICs and was shelved. It reportedly would
establish a multilateral strategic grouping that supports
have supported expanded official exchanges, law
Pacific Island countries as they build their capacity and
enforcement cooperation, joint fisheries and
resilience as secure, independent actors.”
communications infrastructure development, Chinese
language training, and other objectives.
The U.S. Agency for International Development provides
assistance to the Pacific Islands focusing on disaster
In March 2022, the Solomon Islands and China signed a
prevention and response, climate resiliency, and sustainable
security agreement, ostensibly in part to address “internal
fisheries. Other assistance priorities include supporting
threats,” including the protection of Chinese-owned
government and civil society, digital connectivity, energy,
businesses in the country. U.S. and Australian observers
health, and HIV/AIDS prevention and treatment in PNG.
expressed concern that the pact could lead to a PRC
The United States has shiprider agreements with 11 PICs,
military presence in the Solomons. In October 2022, the
allowing local law enforcement officers to embark on U.S.
Royal Solomon Islands Police Force sent a delegation to
naval and coast guard ships in order to board and search
China for training. SI Prime Minister Sogavare’s decision
vessels suspected of violating laws and to combat Illegal,
to switch diplomatic recognition from Taiwan to China in
Unreported, and Unregulated (IUU) fishing. The
2019, combined with inter-ethnic tensions, culminated in
Department of State provides $21 million annually to
anti-government demonstrations and unrest in Honiara, the
Pacific Island parties to the South Pacific Tuna Treaty to
capital, in 2021, including rioting and the burning of
support sustainable fisheries. The Biden Administration
properties in the city’s Chinatown.
announced in July 2022 that it would request an increase of
Security Challenges
this assistance to $60 million annually for ten years (as part
Some reports suggest China is interested in developing
of the $810 million it pledged in September 2022).
dual-use ports and airfields in the region. A PRC company
The Freely Associated States
constructed a wharf in Vanuatu in 2017, although Vanuatu
The United States and the FAS are negotiating the
leaders denied there were discussions about a possible PRC
extension of economic assistance pursuant to the Compacts
military base. In 2018, Australia outbid China to upgrade
of Free Association, which is set to expire at the end of
Blackrock military camps in Nadi, Fiji, and Australia and
FY2023 for the RMI and FSM and FY2024 for Palau, while
the United States agreed to jointly develop Lombrum naval
defense-related and other provisions will continue. Once
base in PNG to preempt PRC investment. In 2021, some
bilateral agreements on renewing assistance are reached,
regional observers expressed concern about China’s plans
Congress must approve them through implementing
to upgrade an airstrip in Kiribati, which had switched
legislation. (See CRS In Focus IF12194, The Compacts of
diplomatic relations from Taiwan to China in 2019.
Free Association).
The United States, Australia, and Japan have cooperated on
Congress also may consider whether to provide further
efforts to address cyber and other security concerns posed
compensation and assistance related to U.S. nuclear testing
by China in the region. In 2020 and 2021, the three
over the Marshall Islands between 1946 and 1958. The U.S.
countries partnered to finance undersea telecommunications
government to date has provided roughly $600 million for
cables for Kiribati, Micronesia, Nauru, and Palau. In 2019,
compensation, environmental cleanup and restoration,
Australia financed an undersea telecommunications cable
resettlement, and health care related to the nuclear tests.
connecting PNG, the Solomon Islands, and Australia,
The RMI claims $2.2 billion in unpaid property damages.
thereby precluding Chinese telecommunications firm
International Assistance
Huawei from undertaking the project. In 2021, the United
States, Australia, and the United Kingdom (U.K.) signed
The top foreign bilateral assistance donors to the PICs are
the AUKUS agreement, allowing Australia to build nuclear-
Australia, New Zealand, Japan, and the United States. Most
powered submarines with U.S. and U.K. technology.
U.S. assistance to the PICs is provided to the FAS pursuant
Self Determination
to the Compacts. Other major aid providers include China,
the European Union, and Taiwan. Taiwan has diplomatic
In a third referendum in November 2021, New Caledonia,
relations with four PICs (RMI, Nauru, Palau, and Tuvalu),
which has large nickel deposits, voted to remain part of
down from six in 2018, while China has relations with ten.
France. Indigenous Kanak, who make up approximately
The PRC provides most of its development assistance in the
40% of the population, boycotted the referendum, which
form of loans rather than grants. Some analysts fear that
some argue may undermine the legitimacy of the vote. In a
Chinese lending could lead to unsustainable debt burdens
nonbinding 2019 referendum, 98% of the inhabitants of the
among some PICs and greater PRC leverage in the region.
island of Bougainville in PNG voted for independence. The
China’s Influence
Bougainville and PNG governments are in the process of
negotiating a roadmap for independence which must be
China has become a significant actor in the region through
approved by the PNG parliament.
diplomacy and economic engagement. The PRC is an
important market for PIC natural resource exports and
Thomas Lum, Specialist in Asian Affairs
tourism. China’s fishing fleet in the region has contributed
Bruce Vaughn, Specialist in Asian Affairs
significantly to IUU fishing. Ten PICs have joined China’s
https://crsreports.congress.gov
The Pacific Islands
IF11208
Disclaimer
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https://crsreports.congress.gov | IF11208 · VERSION 8 · UPDATED