Australia is to provide $US420 million to Papua New Guinea to upgrade key ports, amid concern in Washington and Canberra that China's infrastructure investment in the Pacific had a military ambition.
Earlier this month, U.S. Indo-Pacific coordinator Kurt Campbell said the Pacific may well be the part of the world most likely to see "strategic surprise", in comments apparently referring to possible Chinese ambitions to establish military bases in the region..
Australia's foreign minister Marise Payne said in a statement that the funding will assist the PNG Ports Corporation to increase capacity to accommodate larger ships, including container ships on major trade routes, which will improve trade connectivity.
The funding would also go towards urgent repairs on coastal wharves that are up to 70 years old.
A Chinese-funded wharf built in Vanuatu, sparked Australian media reports in 2018 -which were denied by Vanuatu and Beijing - that China would seek to use the facility for military vessels.