US and Australia vow to bolster Pacific banking as China expands influence
People walk outside a shopping mall in the Sydney Central Business District, in Sydney, Australia
The United States and Australia join forces to bolster financial services in the Pacific Islands, where China is wielding growing influence.
Pacific island nations are feeling it hard as Western banks retreat and limit opportunities for key services.
"The United States is committed to addressing bank de-risking in the Pacific," told US Treasury Undersecretary Brian Nelson as he acknowledged the problems.
Traditional regional powerhouse Australia pledged to continue as an important partner to Pacific Island nations. At the same time, Australian Assistant Treasurer Stephen Jones said that they are wary of countries pursuing their self-interest at the expense of the Pacific islands, but stopped short of referring directly to China.
This comes as China has been expanding its economic and political influence across the Pacific.
China has signed trade and financing agreements with nations of Pacific Island countries, and the Bank of China has an office in every corner of the region.
It is in the context of this influence competition that officials from both the US and Australia itself have not announced concrete plans.
Mostly closed to media, comments from officials during the co-hosted US-Australia two-day Pacific Banking Forum seem to have focused on the improvement of financial integration and access to banking services.
This is an extremely important focus to the economic health of Pacific Island countries.
The Treasury Secretary of the US, Janet Yellen, noted in a virtual speech that there needs to be a "free and open, connected, prosperous, secure, and resilient" Pacific.
(With inputs from Reuters)
