Australian Foreign Minister Penny Wong is visiting Vanuatu with a bipartisan delegation to open an Australia-funded wharf at a maritime police base, and hold talks on improving work and education opportunities in Australia for Vanuatu citizens.
China has been a significant lender for infrastructure projects in Vanuatu in recent years, building its parliament house and sporting stadiums.
Australia stepped up its diplomacy throughout the Pacific islands after the Solomon Islands signed a security pact with Beijing in April.