"EXPANSIONISM" (?)_ China Using Financial Leverage to Expand Pacific Influence, Analysts Warn ( Jarvis Lim - THE EPOCH TIMES )

THE EPOCH TIMES

China Using Financial Leverage to Expand Pacific Influence, Analysts Warn

A Sydney-based think tank says some Pacific nations face ‘substantial debt obligations to Beijing.’

A police patrol car provided with aid from the Chinese Communist Party in Honiara, capital city of the Solomon Islands, on April 18, 2024. Saeed Khan/AFP via Getty Images

Jarvis Lim
8/4/2026|Updated: 8/4/2026


The Chinese regime continues to weaponize its debt-trap diplomacy to displace Western influence and assert dominance in the Pacific, even though its new loan deals have declined in recent years, experts warn.

Beijing’s strategy has now shifted toward smaller, locally targeted initiatives in the Pacific, according to a report published by Australia’s Lowy Institute on July 28. 

The pivot comes as a stumbling Chinese economy leaves the regime with fewer foreign exchange reserves to fund overseas activities, according to Grant Newsham, a retired U.S. Marine officer and former U.S. diplomat.

“Thus, it is being more selective and more financially cautious in how it conducts its overseas activities, including ‘development’ activities,” he told The Epoch Times.

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READ MORE: https://www.theepochtimes.com/china/china-using-financial-leverage-to-expand-pacific-influence-analysts-warn-6071064?ea_src=frontpage&ea_med=section-1

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