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China and Oceania: Economic cooperation anchors shared growth with Pacific Island Countries

Following the third China-Pacific Island Countries Foreign Ministers' Meeting in May 2025, China's relationships with nations across Oceania have entered a phase of stable and pragmatic development, driven primarily by economic interdependence and a distinct development model that resonates with regional partners.

While China's relations with Australia and New Zealand are anchored in mature economic and trade exchanges, it is also engaging with the Pacific Island Countries (PICs) through South-South cooperation.

As developing nations, both sides collaborate on an equal footing to explore a sustainable, modernizing path tailored to their respective national contexts. Robust trade, high-level engagement, and China's sharing of its modernization approaches and experiences are key factors behind the steadily rising relations in the South Pacific.

Economic ties as the ballast stone for major relations

A central theme in China-Australia and China-New Zealand relations is the indispensable role of economics: economy and trade as an important cornerstone.

"China, in fact, for a very long time, until today, remains Australia's largest trading partner," stated Xu Shaomin, Associate Professor at Sun Yat-sen University. "Overall, I have always believed that the economy is still the ballast stone in China-Australia relations."

This perspective is echoed in China-New Zealand relations. Peng Lifang, Assistant Professor at the Chinese University of Hong Kong, Shenzhen, noted, "China is New Zealand's largest trading partner," a fact underscored by high-level promotion, including a visit where the Prime Minister even livestreamed New Zealand products on China's livestreaming platform Douyin.

Hand-in-hand development with PICs

Beyond Australia and New Zealand, China's engagement with Pacific Island Countries (PICs) is also deepening. 

The relations are not defined by a donor-recipient hierarchy but by the principles of equality, mutual benefit, and genuine alignment with the island nations' own development aspirations. As developing countries themselves, China and the PICs share similar historical experiences and contemporary challenges.

Wu Yan, Vice Dean at Guangdong University of Foreign Studies, outlined the expansion at both national and provincial levels: high-level exchanges are continuous, and those between provinces and cities such as Guangdong, Fujian, and Shandong and the PICs are also vigorously expanding.

She added that this engagement is warmly received at the grassroots level. “People in the PICs were very welcoming towards us."

Wang Xuedong contextualized this positive reception by highlighting China's role as a supportive major power. "Among major countries, China is one that is willing to provide support and help others," he said, noting that PICs, as developing nations, need assistance and advocacy on the international stage, and China plays this role.

The much-hailed Chinese path in the PICs

A distinguishing feature of China's cooperation with the PICs is how it shares its developmental experience, as encapsulated in the ancient proverb: "Peaches and plums do not speak, yet a path is formed beneath them."

China's modernization story, lifting hundreds of millions out of poverty and achieving rapid industrialization, naturally draws attention from other developing nations. The PICs are keenly interested in adapting these experiences, from agricultural and fishery cooperation to special economic zone development.

Wang Xuedong, drawing on his research into China's aid in healthcare, climate, and the environment, highlighted a clear contrast. "We are applying our Chinese path to modernization development model," he explained. "We do not force the model in. It is not a mechanical, violent imposition, demanding 'you must follow this path.'"

"We provide them with development ideas, telling our developing brothers that this path of development works," Wang stated. He noted that based on his research, PICs greatly appreciate the development model and are impressed by the economic outcomes derived from it.

China's Belt and Road Initiative is synergistically aligned with the region's own Blue Pacific 2050 Strategy, focusing on infrastructure, trade facilitation, and capacity building. From the construction of the National Government Complex in Micronesia to the proliferation of livelihood projects, cooperation is designed to deliver tangible benefits.

Wu Yan also pointed to tangible, beneficial outcomes of this cooperation, such as in Samoa, where major infrastructure projects are funded by Chinese aid. "It can be said that China's aid for the people of PICs is something from which they can truly benefit," she said.

Reporter | Guo Chuhua

Video & Poster | Guo Hongda

Cameraman | Guo Chuhua

Script | Guo Chuhua

Editor | Yuan Zixiang, Ou Xiaoming, James Campion, Shen He

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