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Australia Probing Nauru’s $1 Billion China Deal

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Australia Probing Nauru’s $1 Billion China Deal

This general view shows the Civic Center where the Pacific Islands Forum (PIF) took place in Aiwo on the island of Nauru on Sept. 4, 2018. Mike Leyral/AFP/Getty Images

The Australian government is investigating whether Nauru’s new AU$1 billion (US$650 million) development deal with a Chinese corporation breaches an ongoing bilateral security pact.

That pact, agreed to in December 2024, requires Nauru to seek Australia’s consent before entering into any third-party security arrangement, including projects involving critical infrastructure such as telecommunications or banking.

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