In April 2011, the Lowy Institute issued a new report noting that China, in its approach to the Pacific, had been "shifting from grant aid to soft loans", which were "leading to increasing problems of indebtedness" and "making Pacific governments vulnerable to political pressure from Beijing". The report suggested that countries may struggle to repay the loans within the set timeframe, and that "outstanding loans may well tie Pacific countries to Beijing", in a context of diplomatic competition with Taipei. The report also noted, however, that some loans "are destined for projects that will create economic growth; growth that will create jobs, reduce poverty and help make repayments".