Australia and China keep gifting cars to other countries – here’s why
As Beijing and Canberra race for influence in the Pacific, a new wave of car diplomacy is hitting the shores of some countries.
Foreign diplomacy often sees countries exchanging lavish gifts to strengthen strategic alliances and trade relationships, and luxury cars have become popular fodder for politicians looking to curry favour.
While various global powerhouses have used vehicles as diplomatic chips for years, Australia and China are deploying a new form of car diplomacy in the Pacific, where countries such as Fiji and the Solomon Islands are increasingly receiving fleets of different models.
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In January 2026, Chinese officials gifted Fiji President Ratu Naiqama Lalabalavu a Hongqi (Red Flag) – a domestic Chinese brand – H9 luxury sedan during their visit to the Pacific island.
In response to China’s “gracious donations”, President Naiqama Lalabalavu reaffirmed Fiji’s “adherence to the One China Policy” – a diplomatic acknowledgement that Taiwan is part of the country.
“The diplomatic partnership between the Republic of Fiji and the People’s Republic of China (PRC) has remained resilient, successfully navigating various challenges and uncertainties over the years,” President Lalabalavu said in a media statement.
According to Chinese Embassy Chargé d’Affaires to Fiji Wang Yuan, the luxury sedan has become “China’s ‘business card’ in diplomatic engagements”.
China donated a fleet of 27 GWM Tank 500 models – valued at approximately AUD$1.4 million – to the Solomon Islands as part of the Pacific Islands leaders’ summit between 8 and 12 September 2025.
Approximately a month later, the Australian Government donated a further 61 vehicles valued at approximately AUD$5.2 million – encompassing popular off-road cars such as the Ford Ranger XLT, Nissan Navara Pro-4X and Toyota HiLux – to the Solomon Islands in August 2025.
Solomon Islands’ Prime Minister Jeremiah Manele said Australia’s fleet donation was “the single largest transfer of vehicles of the RSIPF [Royal Solomon Islands Police Force] by any security partner since the RAMSI [Regional Assistance Mission to Solomon Islands] era”.
Prime Minister Manele said the event marked “another important milestone in the strong and enduring partnership between the governments and peoples of Solomon Islands and Australia”.
But why exactly are China and Australia – two major countries with geopolitical interests in the Pacific – donating cars to smaller islands?
Foreign diplomacy experts told Drive that the practice of donating luxurious gifts, such as vehicles, has been around for centuries. In ancient times, kings and queens might have used horses, camels and elephants to showcase their wealth.
But according to Lowy Institute Director of Pacific Islands Program Mihai Sora, “today, leaders like to roll heavy in convoys of luxury SUVs”.
For China and Australia, these donated vehicles are visible tools for courting and strengthening strategic partnerships with various Pacific Island countries across the region.
“China is very good at leveraging ‘gift diplomacy’. Making a big fuss about gifting fleets of vehicles to Pacific countries [like Fiji and the Solomon Islands] is how China seeks to portray itself as a generous and indispensable partner to them,” Sora told Drive.
“Vehicles are high-visibility gifts, because they are effectively rolling advertisements for China’s diplomatic brand. Think of it like a corporation putting its logo on a team jersey.”
He added that over the years, “there has developed something of an inelegant ballet between Pacific leaders and Chinese dignitaries”, particularly when it comes to the ‘One China Policy’.
“Pacific leaders know very well what to ask for, and Chinese dignitaries know equally well what to offer. Public reaffirmations of Chinese positions on domestic or international issues are indeed part of the quid pro quo,” he said.
However, this diplomatic gift exchange isn’t just a Chinese-specific strategy; it’s part of a much larger geopolitical system that other countries have used for decades.
According to Australia-China Relations Institute Director Professor James Laurenceson, these vehicle donations “are hardly unique to China”.
“Taiwan offers gifts too in a bid to stop Beijing from poaching its diplomatic allies. It would be naïve to imagine that Australia’s gifts are purely for altruistic reasons, too,” Laurenceson told Drive.
Professor Laurenceson explained that Fiji’s support of the ‘One China Policy’ reflected major global sentiment.
“A Pacific Island leader offering support for China’s ‘One China’ principle just means they are part of that global majority, so it’s not difficult for them to acquiesce to Beijing’s preferences in that request,” he said.
While Sora acknowledged that gifted vehicles are an important part of a small country’s economy, the differences between the makes and models donated by China and Australia also reflected a broader diplomatic strategy.
“The Australian Government would argue, quite reasonably, that its vehicles and other gifts of equipment actually do the opposite of locking Pacific nations into Australian security ecosystems,” he said.
“Australia provides vehicles that match local markets – ones that can be serviced locally or resold. [Whereas] China’s equipment donations typically require Chinese parts and Chinese technicians for servicing, even for the basic reason that the operations manuals are in Mandarin and are in fact explicitly designed to lock Pacific countries into Chinese-dominated supply chains.”
Though Australian security officials have scrutinised Chinese vehicles as a potential cybersecurity risk, Professor Laurenceson said the sentiment can go both ways.
“No doubt some security analysts will see these vehicles as potential listening stations as government officials drive around in them. That possibility cannot be entirely discounted,” he said.
“But Chinese analysts could similarly argue Australia’s gifts of vehicles might serve the same purpose.”
In February 2026, the Office of the Australian Information Commissioner – the independent federal regulator for privacy information – launched an investigation into two car brands over alleged breaches of privacy laws relating to internet-connected cars potentially harvesting sensitive driver information, such as voice, location and images.
Australian Privacy Commissioner Carly Kind said at a Senate hearing in February this year that the privacy watchdog initially had four car makers on their radar before proceeding with the two official inquiries.
“We have an open investigation against two separate entities. We conducted further preliminary inquiries against two separate entities, but did not decide to take them forward,” Kind said.
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