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Australia has historically been a prominent diplomatic partner for the Pacific Island countries, providing development assistance to support their social and economic progress. China gradually heightened its political and economic influence in the Pacific area by integrating the region into its Belt and Road Initiative. This development has encouraged scholars to examine Australia's diplomatic engagements in the Pacific region in response to China's growing presence. This article approaches this issue by using the concept of economic statecraft as an analytical tool. It argues that Australia's reactions to China's presence through the infusion of strategic motivations into foreign aid and the use of multilateral agreements and initiatives can be seen as positive economic statecraft with two characterizations: emulation of China's successful strategies and differentiation from Chinese approaches through the incorporation of multilateral and ideational methods. [ABSTRACT FROM AUTHOR]