Australia and Vanuatu have signed a new economic and security agreement that prohibits any country from establishing permanent military bases in Vanuatu, amid the strategic influence competition between China and Western countries in the Pacific region.
On 30 June 2026 GMT+7, Australian Prime Minister Anthony Albanese and Vanuatu Prime Minister Jotham Napat signed an economic and security cooperation agreement in Canberra. The key provision bans foreign countries from establishing permanent military bases in Vanuatu.
This agreement comes as Vanuatu, a Pacific island nation, finds itself amid a strategic influence rivalry between China, the United States, and their allies. Australia has long expressed concerns that China may seek to expand its security role and establish permanent operational bases in the Pacific, which Australia views as potentially destabilizing to regional stability and security.
Under the new agreement, Australia will increase economic support to the Vanuatu government, which currently counts China as its largest foreign creditor. The pact also strengthens security cooperation to prevent major powers from establishing military bases in the country. Analysts see this agreement as reflecting Australia’s efforts to curb China’s growing influence in the Pacific, a contest that has intensified over recent years.