Jun 29, 2026 – 2.50pmVanuatu will be free to pursue Chinese investment in its critical infrastructure network under a watered-down security agreement with Australia while pledging not to allow Beijing to establish a military base inside the Pacific nation.Prime Minister Anthony Albanese and Vanuatu’s leader Jotham Napat signed the long-awaited Nakamal agreement in Canberra on Monday, almost a year after a planned signing ceremony in Port Vila collapsed over concerns Vanuatu would surrender too much sovereignty to Australia, particularly over foreign investment decisions.Subscribe to gift this articleGift 5 articles to anyone you choose each month when you subscribe.Subscribe nowAlready a subscriber? Fetching latest articles
‘Nothing to hide’: Australia signs weaker Vanuatu pact after China dispute
The long-awaited Nakamal agreement secures a promise against foreign military bases but does not give Australia veto power over infrastructure investment.
TL;DRAI
Australia and Vanuatu signed the Nakamal agreement allowing Chinese critical infrastructure investment while barring Beijing military bases. For tech leaders, this signals the trade-off between Western constraints and national sovereignty over infrastructure.
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