China Using ‘Pay-Day Loan Diplomacy’ in the Pacific: US Diplomat

China Using ‘Pay-Day Loan Diplomacy’ in the Pacific: US Diplomat
The U.S. flag flies at a welcoming ceremony between Chinese leader Xi Jinping and U.S. President Donald Trump in Beijing on Nov. 9, 2017. Thomas Peter/Pool via Getty Images
Reuters
Updated:

SYDNEY—China is using “pay-day loan diplomacy” to exert influence in the Pacific, the new U.S. ambassador to Australia said on March 13, comments that threaten to inflame regional tensions.

The United States and its regional allies have been battling China for greater influence in the Pacific—a region that has votes at international forums like the United Nations and controls vast swathes of a resource-rich ocean.