“Kiribati exemplifies the underestimated influence of microstates in shaping the international agenda, especially on environmental and nuclear issues. Its geographically significant exclusive economic zone spans 3.5 million square km and is crossed by nine undersea cables connecting the United States with Southeast Asia and Australia.”
“Kiribati’s location has long been of interest to China. It maintained a satellite station in Tarawa until Kiribati made the diplomatic switch to Taiwan in 2003. China is also aware that Kiribati is close to US and French territories as well as key military bases, and sits on potential supply routes should a crisis break out in East Asia. Observers say China may invest in a runway on Kanton Island, in competition with Australian and US interests.”
“Kiribati remains dependent on foreign support and vulnerable to influence, with the lowest GDP per capita in the Pacific and aid accounting for 18 percent of national income. Australia must continue to monitor developments in Kiribati, and it could consider countering Beijing’s influence by signing a bilateral agreement similar to those recently signed with Tuvalu, Nauru and Papua New Guinea.”
https://www.aspistrategist.org.au/australia-should-firm-up-ties-with-kiribati-before-china-does/