When we think of countries trying to show the world their power and influence, we might think of muscular shows of force, like China’s army parading its newest nuclear weapons, missiles and lasers in a military parade in Beijing, last week.

But then there was our government scrambling to out-deliver China with a tit-for-tat over, of all things, cars, for a tiny but crucial Pacific nation.

Today, international and political editor Peter Hartcher on why the region Australia long thought was least important is now the region that matters the most.