Island nations scattered across the Pacific Ocean are at the center of an intensifying competition between China and the U.S. for maritime routes, deep-water ports and other strategic assets in what the Lowy Institute calls a new "Great Game.”

The countries’ proximity to key shipping lanes and the communication cables that criss-cross the Pacific floor, together with fisheries and seabed minerals, also encourage the rivalry, Lowy said in a report on Wednesday. But it’s the region’s maritime location between Asia, North America and Australia that is set to keep it at the forefront of major powers’ defense strategies.

"The Pacific’s geopolitical landscape is increasingly crowded, with multiple powers vying for influence,” report authors Mihai Sora, Jessica Collins and Meg Keen said. "China is expanding its reach through diplomatic relations, infrastructure projects and development finance, while traditional partners such as Australia and the U.S. strive to maintain their influence.”