Australia probes Nauru-China business deal

SYDNEY - Australia is investigating whether Pacific microstate Nauru breached a security treaty by inking a lucrative business deal with a Chinese company.

Nauru last week announced it had signed a US$650 million (S$834.4 million) economic development agreement with the China Rural Revitalisation and Development Corporation.

Australian Minister for Pacific Island Affairs Pat Conroy said officials were looking into whether that deal complied with a recent security pact between Canberra and Nauru.

“(Australia) is engaging with the government of Nauru about whether it activates parts of our treaty,” Mr Conroy told reporters on Aug 19.

“That is a really important treaty for us – that helps position us as a security partner of choice with Nauru.”

Australia and Nauru announced a landmark security treaty in December 2024, advancing Canberra’s aim of blunting China’s growing influence in the region.

Under the deal, Nauru must seek Australia’s agreement before it signs any bilateral accords on maritime security, defence and policing.

Nauru also agreed to consult Australia if other parties look to strike agreements granting them access to critical infrastructure such as ports and airfields or its banking sector.

In return, Nauru receives tens of millions of dollars to prop up its government budget and bolster its stretched police force.

Nauru in 2024 surprised many Pacific watchers when it

abruptly severed diplomatic links with Taiwan

in favour of Beijing.

Nauru’s Foreign Affairs Minister Lionel Aingimea travelled to Beijing to sign the business deal last week.

The China Rural Revitalisation and Development Corporation agreed to invest in key sectors such as agriculture and fisheries, according to a Nauru government release.

Nauru, population 12,500, is one of the world’s smallest countries, with a mainland measuring just 20 sq km.

It is considered especially vulnerable to climate change. AFP