The Struggle for Recognition: Diplomatic Competition Between China and Taiwan in Oceania

The PRC and Taiwan are competing to gain diplomatic recognition from Pacific Islands states, a number of which recognise Taiwan and serve as a barrier to its international isolation. Since much of Oceania is in Australia’s sphere of influence, this struggle has often involved Canberra. This paper focuses on the intensifying conflict–with conclusions about the local political economic situations of the countries in Oceania that are most likely to switch recognition, the dilemmas that the issue poses for Australia and its alliance with the US, and the game theory of these auctions of diplomatic recognition. The rental of recognition is analysed as a “sovereignty business” in which some Pacific Islands states engage—similar to the offshore financial centres which are prevalent in the region.