Australia, Timor-Leste sign defence deal to counter China’s influence

Australia and Timor-Leste signed a new defence agreement on October 22, 2026, to boost cyber and maritime security, as Canberra seeks to curb China’s expanding influence in the Pacific. The agreement was formalized in Dili, Timor-Leste, between Australian Defence Minister Richard Marles and Timor-Leste’s Prime Minister Xanana Gusmao. Australia is Timor-Leste’s largest defence and security partner, and the pact is expected to significantly increase joint defence exercises, Marles told reporters. This deal comes as Australia expresses increasing concern over China’s expanding military and police presence in the Pacific. In August 2026, China’s Defence Ministry announced that its Defence Minister Dong Jun had met with Timor-Leste’s leaders in Dili and offered to “take military-to-military relations to a new level.” Australia has voiced apprehension regarding the rapid expansion of China’s navy and the presence of Chinese police in several Pacific Island countries. Australia has recently concluded several major defence and economic agreements with Pacific Island nations, including Vanuatu, Fiji, and Papua New Guinea, primarily aimed at limiting China’s security role. The agreement with Vanuatu stipulates that no foreign military base or infrastructure can be built there, with Australia serving as the archipelago’s main policing partner. However, Vanuatu’s police minister rejected on October 21 that the deal would require Chinese police to be “phased out.” Vanuatu’s police force also published social media images showing Chinese police training officers to use surveillance drones. Under the new defence framework, Australia will provide A$62 million (S$79.2 million) for cybersecurity, maritime security, infrastructure, disaster relief, and training. Defence Minister Richard Marles also announced that Australia would supply Timor-Leste with three additional police vessels. Timor-Leste’s Prime Minister Xanana Gusmao stated that the agreement would assist his country in combating organized crime and illegal fishing. Timor-Leste, located approximately 700km north-west of Australia, gained independence from Indonesia in 2002. Separately, Shin, the Governor of the Bank of Korea, South Korea’s central bank, stated that investment-focused fiscal spending is compatible with monetary tightening. South Korea aims to employ 7,200 Nepali workers under the Employment Permit System (EPS) in 2026. Since 2008, over 125,000 Nepalis have found employment in South Korea through EPS. Similarly, an estimated 13,000 Nepalis reside in Poland, where the maximum validity for seasonal work visas has been extended to nine months. Such international policy shifts can indirectly influence Nepali migrant workers.