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flag China becomes second-largest donor to Pacific Island nations, overtaking the U.S., as geopolitical competition grows.

flag China has become the second-largest donor to Pacific Island nations, overtaking the US, as detailed in a Lowy Institute report. flag Despite Australia remaining the top donor, China's aid, now focusing more on grants, has grown by 6% to $256 million in 2022. flag This shift, particularly targeting countries like Solomon Islands and Kiribati, highlights increased geopolitical competition in the region. flag The report notes a 18% drop in development finance to Pacific nations since 2021, raising concerns about debt sustainability.

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