A rare diplomatic spat exposes growing pressures in the Pacific as US, China vie for influence

Pacific allies don’t usually air their dirty laundry in public. But a rare on-the-record dispute between New Zealand and Kiribati has renewed focus on the poor and isolated island nation, highlighting the existential threat it faces from the climate crisis – against the backdrop of a tussle between the world’s biggest powers for regional dominance.

When New Zealand’s right-wing government unexpectedly announced an aid review for its Pacific neighbor last week – ostensibly over an alleged snub to a top official – it “caused serious anxiety” for the approximately 120,000 people who live in Kiribati, according to one i-Kiribati minister. Foreign aid accounted for 18% of Kiribati’s national income in 2022, according to the Lowy Institute – with New Zealand among its largest donors.

The Micronesian nation of 33 coral islands is scattered over a remote area of the central Pacific that spans 3.5 million square kilometers (1.3 million square miles) – an area larger than India.

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