The Albanese government’s efforts to curb China’s influence in the Pacific has suffered a major setback after Vanuatu rejected a proposed security pact with Canberra.

Prime Minister Anthony Albanese was unable to secure a deal with Vanuatu, which would have given Australia veto power over Chinese investment in the island’s critical infrastructure.

Mr Albanese will now travel to the Solomon Islands to take part in the Pacific Islands Forum, but without the signature he seeks on the $500 million Vanuatu deal.

Vanuatu turned down the agreement during Mr Albanese’s visit, a year after China gifted the island a $31 million presidential palace and new convention centre.

Foreign Minister Penny Wong told Sky News on Wednesday that Australia was in a “permanent contest” for control of the Pac

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