China has said Australian politicians are "wrong" to fear its investments in the Pacific, responding to Australian government criticism that Chinese aid risked creating unsustainable debt for the Pacific.
On Wednesday, Labor's foreign affairs spokeswoman, Penny Wong, proposed Australia should set up a regional infrastructure fund to assist Pacific nations who face a "particularly acute" infrastructure deficit.
China has said the Pacific Islands require large amounts of capital to "take off" economically, and that its aid program is in response to "urgent needs.”