Australia Investigates Nauru $1B China Deal Over Treaty Breach

Australia is investigating whether Nauru’s recently announced AU$1 billion investment agreement with the China Rural Revitalisation and Development Corporation (CRRDC) breaches a bilateral security treaty signed in December 2024. This treaty grants Australia veto power over Nauru’s security agreements and requires Canberra’s approval on any partnerships involving critical infrastructure and national security. Australian Pacific Minister Pat Conroy emphasized the importance of the treaty and is working with Nauru to determine if the deal, covering sectors like renewable energy, marine fisheries, and infrastructure, violates these terms. The legitimacy of the Chinese company involved remains unclear, and Pacific analysts question the feasibility of such a large investment given Nauru’s small population. While Australia supports development assistance from other nations, it insists that security roles in the Pacific remain with countries within the Pacific Islands Forum, excluding China. The situation highlights ongoing geopolitical tensions between China and traditional partners like Australia in the Pacific region ahead of the upcoming Pacific Islands Forum leaders meeting.