China eyes permanent military base in Vanuatu - report

Australia and New Zealand said today they were closely monitoring developments while downplaying a report that China wants to establish a permanent military base on the Pacific nation of Vanuatu.

The Sydney Morning Herald said Beijing had approached Port Vila about the possibility, potentially upsetting the delicate strategic balance in the region.

China has been aggressively growing its military and pushing its footprint deeper into the Pacific, forging closer links by showering nations with development money.

The Herald, citing multiple sources, said Beijing's military ambition in Vanuatu would likely be realised incrementally, possibly beginning with an access agreement allowing Chinese naval ships to dock routinely for refuelling.

This arrangement could then be built on, it added, with intelligence and security figures in Australia, New Zealand and the United States becoming increasingly worried about China's growing influence.

Australian Foreign Minister Julie Bishop, who travelled to Vanuatu last weekend with Britain's Prince Charles, said she was confident of Canberra's strong relationship with Port Vila.

"I'm not aware of a military offer being made by China to Vanuatu," she said, noting that the Vanuatu government had said to the newspaper it was not aware of such proposal.

While China has been investing in infrastructure around the world, to date it has only established one military base -- in Djibouti in northern Africa.

"We have very good relations with Vanuatu and I remain confident that Australia is Vanuatu's strategic partner of choice," Bishop added.

New Zealand Prime Minister Jacinda Ardern said she had read the Herald report and "I can't comment on the validity of that".

"But what I can say is that we of course keep a watching eye on activity within the Pacific and that New Zealand is opposed to the militarisation of the Pacific generally."