China's Opportunity in the Pacific Amid US Budget Battle

A 45-day stopgap measure passed by the US Congress to avert a government shutdown has left potential funding shortfalls for strategic Pacific island states, making them economically vulnerable and possibly more receptive to Chinese approaches. The funding programs for Micronesia, the Marshall Islands, and Palau, which are at the center of a US battle for influence with China in the Northern Pacific, were due for renewal but were not included in the stopgap measure. This could lead to increased Chinese political warfare spin and economic interference in the region, as China waits in the wings with ready cash. The Biden administration has made renewing the Compacts of Free Association (COFAs) a priority, but congressional infighting and disagreements over how to address the legacy of US nuclear testing in the Marshall Islands pose additional hurdles.