This thesis explores the relationship between China’s aid policy and Bougainville’s development needs as well as some of the political, economic and technical challenges encountered. Bougainville, an autonomous territory within the state of Papua New Guinea, faces significant development issues. This thesis examines these and provides assessment on how they can be addressed, including the provision of external aid. As a growing aid donor in the territory, China’s aid is explored in more detail, in particular its interests in Bougainville and the MOUs it has signed with the Bougainville Government. The study situates development against the backdrop of two major historical contexts, the destructive conflicts of 1989—98 and the optimism generated by the 2019 referendum, where 97.7% of the people voted for independence. Apart from identifying and critically examining Bougainville’s development challenges and constraints, the study also examines the prospects and opportunities for resource utilization and people-based socio-economic growth. A number of interconnected theoretical approaches are utilised in the study. The post-development theory used in the study proposes a framework that supports holistic transformation of development processes so as to avoid claims of serial exploitation by donors. The constructivism approach frames the distinctive diversity of interests in the development and aid space; on the one hand is China’s global economic ambitions, on the other hand is Bougainville’s internal development needs. Where the two different sets of interests meet is the focus of this thesis: What are some of the economic, political, social and environmental challenges and prospects encountered as a global power engages with a small and new Pacific territory?