The United States is injecting millions more dollars into the Pacific in a bid to counter the growing Chinese influence in the region.
Joe Biden made the announcement at the White House on Tuesday (NZ time), where he welcomed Pacific leaders.
It comes just hours after Beijing was accused of trying to assert its dominance in the South China Sea.
One by one Pacific leaders rolled into the White House, where the red carpet was quite literally rolled out, including for our Foreign Minister.
Nanaia Mahuta must have wondered when she heard one mathematical blunder inside.
"Today I'm pleased to announce we're working with Congress to invest $40 billion in our Pacific Island infrastructure initiative," US President Joe Biden said.
Biden meant $40 million, not "billion", but it's still a significant investment for the Pacific.
It's part of a renewed push from the US to reboot relations in our region. Today America recognised Niue and the Cook Islands as independent states.
In the last year it has opened embassies in the Solomon Islands and Tonga, and committed to billions of dollars in aid.
While much of it will assist with climate change mitigation, there's another reason the US is so willing to help.
"President Biden, your message to China as you stand next to these leaders today?" a reporter yelled.
- Australia cancels two Belt and Road deals with China as relations sour further
- Pacific forum leaders hope US-China competition will bring region together rather than pull it apart
- China rejects accusations it is setting 'debt traps' all around the Pacific
- Appeasing China, New Zealand abandons the Five Eyes
"Can you keep the Indo-Pacific free and open?" another asked.
The President chose not to answer, however, the US is concerned Beijing has an eye on the Pacific.
China signed a security agreement with the Solomon Islands and has discussed signing one with others.
It comes amid ongoing tensions in the South China Sea near Taiwan, which China claims as its own.
"I think the Americans are certainly hoping that this approach of listening carefully to what the Pacific Island states, will generate the results they want in the long term," international relations Professor Robert Patman said.
Prof Patman said despite investments, these nations aren't interested in becoming pawns between the US and China.
He believes it's not for the US to tell Pacific nations to pick sides.
"You run the risk of actually offending them, patronizing them," he explained.
Tensions in the South China Sea have been on full display over the last few days.
The Philippines claimed it removed a fishing barrier China put up in a contested area, angering Beijing.
It's an issue likely to be top of mind at the next Pacific Island Leaders Forum in November.
