A$600 Million Deal Links Sports Diplomacy with Security Strategy Amid China’s Rising Influence

SYDNEY – Australia has committed A$600 million (S$517.7 million) to integrate a Papua New Guinea (PNG) rugby team into its National Rugby League (NRL), solidifying ties between the two nations while countering China’s growing influence in the Pacific. Announced on 12 December in Sydney, the agreement includes a stipulation that PNG must maintain Australia as its primary security partner to sustain the arrangement.

Prime Minister James Marape of PNG described the initiative as “transformational” for bilateral relations, affirming that PNG prioritised its partnership with Australia. “This is about securing a stable PNG, a protected border, and stronger ties with Australia,” he remarked.

The team, slated to compete in 2028 and based in Port Moresby, represents Australia’s largest investment in sports diplomacy to date. Prime Minister Anthony Albanese, an enthusiastic rugby fan, underscored the role of shared values in the partnership and pledged the funding over a decade.

PNG, where rugby league is a national passion, celebrated the deal widely. Bernard Yegiora, a political analyst at Divine Word University, noted the initiative’s potential to reshape perceptions. “This is a unifying move, connecting PNG and Australia through a shared love for rugby league,” he said.

The agreement also reflects a strategic pivot in Australia’s approach to counter Beijing’s regional influence. Recent years have seen heightened competition for security agreements in the Pacific, with Canberra anxious over the possibility of Chinese military bases in the region.

China’s growing presence has prompted similar deals elsewhere, including treaties with Nauru and Tuvalu. These agreements, like the PNG rugby partnership, combine development aid with diplomatic conditions to ensure Australia remains the dominant security ally.

In PNG, where 80% of the population follows the NRL, the prospect of a home team competing internationally has inspired hope for economic and social uplift. New legislation exempts foreign players joining the team from income tax, aiming to overcome challenges like high crime rates in Port Moresby.

Greg Blood, an Australian sports historian, highlighted the unprecedented scale of the project, describing it as “a bold attempt to build regional relationships through sport.” While hurdles remain, such as attracting foreign talent and addressing logistical concerns, the initiative is seen as a strategic investment in regional stability and public sentiment.

PNG Prime Minister Marape echoed this sentiment, calling rugby a unifying force. “Our diversity as a nation and our ties with Australia grow stronger through this shared passion, benefiting people across our countries,” he said.

Australia remains PNG’s largest donor, contributing nearly A$1 billion in aid annually, far outpacing China and Japan. The rugby partnership further cements Canberra’s role in fostering development and security in its Pacific neighbour.