(Bloomberg) -- Australia will boost foreign aid by almost A$1.4 billion in the Pacific and Southeast Asia as the government in Canberra attempts to counter China’s growing influence in the regions.

Australia’s budget released on Tuesday provided an additional A$900 million for Pacific nations over four years and A$470 million for partners in Southeast Asia.

The increased development assistance will make Australia “stronger and more influential in the world,” Foreign Minister Penny Wong said in a statement. The government “is working to make Australia a partner of choice for the countries of our region.”

Since coming to office in May, Wong and the center-left Labor government have embarked on a flurry of diplomacy in the neighboring Pacific in an attempt to roll back Chinese gains in the region. Labor, in opposition, accused its conservative predecessors of dropping the ball when it came to the island nations off Australia’s coast.

News of a security deal between Beijing and the Solomon Islands in April sparked fears that Chinese warships could soon have a military base just 2,000 kilometers (1,200 miles) from Australia. The Solomons’ maritime area spans key shipping lanes between Australia and its key trading partners.

The government also said that Australia’s defense spending will surpass 2% of gross domestic product over four years, although few specific spending measures were announced. The nation’s military is currently undergoing a major review and the government is due to receive initial findings in early 2023.

The budget set aside A$147 million over four years to advance security and engagement in the Pacific including:

  • A new Australia-Pacific Defence School
  • Upgrading aerial surveillance in the region
  • Funding ongoing Australian deployments to the Solomon Islands

Wong said Australia would also increase development assistance to its northern neighbors as the Department of Foreign Affairs and Trade creates a specific Southeast Asia office to work on regional strategy.

 

 

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