As climate shocks intensify and aid from legacy donors comes under pressure, China is increasingly filling the development gap for Small Island Developing States (SIDS), a group of climate-vulnerable economies spread across the Caribbean, Pacific, Indian Ocean, and South China Sea, according to a new report from the UK-based NGO ODI Global.
These countries face shared structural challenges, including small domestic markets, high debt burdens, limited access to concessional finance, and outsized exposure to sea-level rise and extreme weather, making reliable external partners critical to long-term development planning.