The Oceania Times

Top Menu

  • About us
  • Contact Us
  • Cookie Policy
  • Disclaimer
  • Privacy Policy
  • Terms and Conditions

Main Menu

  • Australian Economy
  • Brokers
  • Commodities
  • Currencies
  • Financial Market
  • Gold and Precious Metals
  • Investment
  • Stock Shares
  • About us
  • Contact Us
  • Cookie Policy
  • Disclaimer
  • Privacy Policy
  • Terms and Conditions

logo

The Oceania Times

  • Australian Economy
  • Brokers
  • Commodities
  • Currencies
  • Financial Market
  • Gold and Precious Metals
  • Investment
  • Stock Shares
  • Centerra Gold: Oversold Gold Miner With Strong Balance Sheet (TSX:CG:CA)

  • FBI warns Coloradans of cryptocurrency scams

  • Biden Cracks Down on Chinese Tech Investment

  • Why General Motors Shares Climbed in January

  • UW Complements State’s Investment With Controlled Environment Agriculture Center | News

Australian Economy
Home›Australian Economy›China’s Pacific tour spurs hopes and fears in tiny island nations | Business and Economy News

China’s Pacific tour spurs hopes and fears in tiny island nations | Business and Economy News

By Megan
May 27, 2022
50
0
Share:

At a carefully choreographed press conference in the Solomon Islands capital of Honiara, Chinese Foreign Minister Wang Yi made a promise that will be bookmarked by diplomats and analysts in capitals around the world. Beijing, he said, had “no intention” of building a military base in the Pacific nation.

A month after China and the Solomon Islands signed a security agreement, sparking concerns in the United States and its allies, Wang on Thursday embarked on a 10-day tour of eight Pacific nations that also includes Samoa, Fiji, Vanuatu, Kiribati, Tonga, Papua New Guinea and East Timor. His visit is the latest chapter in an intensifying geopolitical race to woo the region’s nations. Anthony Blinken, the US secretary of state, visited Fiji in February and Australia’s new Foreign Minister Penny Wong landed in Suva on Thursday.

But even though Wang scotched suggestions of a military facility in the Solomon Islands, a veil of secrecy and opacity over specific Chinese plans — heightened by restrictions on the press covering his visit in Honiara — has led to a series of unanswered questions in the region.

Does the security pact with the Solomon Islands allow Beijing to send warships to Honiara, as a leaked draft suggests? Is China pressuring other Pacific Island nations to sign on to a regional version of that agreement, as another leaked memo indicates? Will a proposed agreement on developing the “blue economy” of the Solomon Islands allow China to exploit undersea minerals, as a third leaked document portends? On Thursday, the government in Honiara said that China and the Solomon Islands were “expected to sign a number of cooperation agreements” during Wang’s visit.

On Friday, the Solomon Islands government confirmed the sides had signed a number of agreements related to visa waivers for diplomats and officials, civil aviation, disaster risk reduction and health cooperation. The texts of the agreements have not been publicly released.

“There is a lot of suspicion and distrust between the people and the government on what China is planning to do in terms of development,” Michael Salini, a businessman and commentator based in Tulagi, Solomon Islands, told Al Jazeera. “No one really knows what is on offer from the Chinese side.”

Chinese State Councilor and Foreign Minister Wang Yi shakes hands with Solomon Islands Foreign Minister Jeremiah Manele during a ceremony in Beijing
Chinese Foreign Minister Wang Yi is on a visit to eight Pacific nations, including the Solomon Islands [Naohiko Hatta/Pool via Reuters]

Some things are clear, though. Since 2009, China has been the second-biggest lender to the region, committing a total of $169m, including grants.

Unlike the US and its allies like Australia, or international bodies like the World Bank and Asian Development Bank (ADB), Beijing usually does not tie its aid to economic and governance reforms.

“That allows China to say that its loans and grants come without strings attached — even though there are always political considerations involved,” said Peter Kenilorea Jr, an opposition member of parliament in the Solomon Islands.

“This makes China an attractive economic partner for our resource-strapped countries.”

On this trip too, governments of Pacific Island nations are expected to seek Chinese support on everything from infrastructure projects to the post-pandemic recovery of their fragile economies.

Willie Jimmy, a former Vanuatu finance minister and ambassador to China, said he welcomed Wang’s visit, although he had not been previously aware of the trip due to a lack of media publicity or government announcements.

“I welcome any other projects that anyone wishes to announce to help the government and the people of Vanuatu because other donors don’t pick up any projects not in accordance with their foreign policy aid [objectives]. China is picking up those,” Jimmy told Al Jazeera, adding that road building and other infrastructure development in the archipelago, which includes 65 inhabited islands, is difficult due to its scattered island terrain and localised politics.

“That is most welcome by the people. I support China’s initiative to develop the infrastructure of the Pacific Islands.”

Jimmy dismissed fears of so-called debt-trap diplomacy, saying that as finance chief he had persuaded China to forgive 1 billion Vanuatu vatu ($8.6m) in debt after the government was unable to make repayments for two 20-seater Harbin Y-12 aircraft.

“ADB, IMF, World Bank or any other donor cannot do it,” he said. “That’s why I don’t believe in this debt trap.”

Solomon Islands flag in Beijing
China and Solomon Islands have signed a security pact that has raised alarm in the United States, Australia and New Zealand [File: Reuters]

Many of the region’s countries are deeply indebted to China.

Vanuatu’s debt to China is almost a quarter of its gross domestic product (GDP), according to AidData, an American research group that tracks how much different governments owe to others.

“Significant debt forgiveness is a hot topic to ease the fiscal burden,” Glen Craig, managing partner at Vanuatu-based Pacific Advisory and chairman of the Vanuatu Business Resilience Council, told Al Jazeera.

Wang’s visit has not been publicised in Vanuatu, he said.

“Generally I think it will be viewed as a sign of the importance of the nation.”

Across the region, recovery from COVID-19 is also a priority, said Sandra Tarte, director of the Politics and International Affairs Program at the University of the South Pacific in Fiji.

“The Chinese foreign minister may be asked what China can do to aid and support countries as this time  — bearing in mind China itself is still experiencing major Covid-induced disruption,” Tarte told Al Jazeera.

But there is mounting scepticism in the region over China’s insistence that its intentions are benign. A Chinese-backed plan to develop a World War II-era airstrip in Kiribati has sparked concerns that Beijing might be planning a base there — though the island nation’s government has denied that there is any such proposal. Last week, the Financial Times reported that China is in talks with the governments of both Kiribati and Vanuatu for security pacts.

Brian Orme, a former opposition spokesperson in Kiribati, said that current President Taneti Maamau enjoys broad public support and would be politically able to push through a security deal with China if he wanted to. Orme said he believes China intends to potentially set up two bases in Kiribati — a move that the US would almost certainly view as a provocation.

“China wants our waters, our deep sea minerals and wants these islands to be close to the United States,” Orme told Al Jazeera.

“Anything China wants, China will get this Friday,” he added, referring to Wang’s visit to the country today.

“There’s no real opposition party. A little bit of noise, but there’s no real opposition party at all.”

Boy watching the sea in Kiribati
Climate change is a major concern for Pacific Island nations like Kiribati [File: David Gray /Reuters]

China’s security presence is not the only thing worrying some in the region. Kenilorea Jr, the Solomon Islands opposition legislator, said he was concerned about a memorandum of understanding with Beijing focused on allowing China access to his country’s waters.

“Sure, developing the Solomon Islands blue economy would bring revenue, but I’m worried about the depletion of our mineral and fishing resources,” he told Al Jazeera.

The US and its allies are not standing by. Apart from the visits to the region by Blinken and now Wong, the leaders of the US and Australia also met with their counterparts from India and Japan for a session of the Quad grouping in Tokyo early this week. “It’s not lost on me that Wang is visiting when he is,” Kenilorea Jr said.

That geopolitical competition between the US and its allies on the one hand and China on the other could in theory help Pacific island nations strike the best deals. But in reality, said Tarte, the region needs Washington and Beijing to work together on its most pressing concern: climate change.

“In this sense the geopolitical rivalry and competition is not serving anyone’s interests,” she said.

Source link

TagsAsia PacificBusiness and EconomyeconomyFijiKiribatinewsPapua New GuineaSamoaSolomon IslandsTongaVanuatu
Previous Article

It’s the economy, stupid… | The Spectator ...

Next Article

Australian Q1 GDP data due next week ...

0
Shares
  • 0
  • +
  • 0
  • 0
  • 0
  • 0

Megan

Related articles More from author

  • Australian Economy

    Australia plans privacy overhaul after massive telecom data leak | Business and Economy News

    September 26, 2022
    By Megan
  • Stock Shares

    Stocks making biggest after hour moves: Novavax, Allbirds and more

    August 8, 2022
    By Megan
  • Commodities

    Global trade expected to grow steadily, Dubai Multi Commodities Centre report finds

    July 6, 2022
    By Megan
  • Australian Economy

    Australia breaks with global trend, slows interest rate hikes | Business and Economy

    October 4, 2022
    By Megan
  • Gold and Precious Metals

    Latin Metals Secures Drill Per

    January 9, 2023
    By Megan
  • Investment

    Florida man pleads guilty to $30M forex investment fraud scheme

    October 2, 2022
    By Megan

Leave a reply Cancel reply

You may interested

  • Investment

    The Infrastructure and Investment Jobs Act (IIJA): An Anniversary Report | Pillsbury Winthrop Shaw Pittman LLP

  • Stock Shares

    Dollar jumps, U.S. stocks buck global rally

  • Gold and Precious Metals

    AIM WINNERS & LOSERS: Enwell loses Ukraine license; Thor strikes gold

  • LATEST REVIEWS

  • TOP REVIEWS

Timeline

  • February 2, 2023

    Centerra Gold: Oversold Gold Miner With Strong Balance Sheet (TSX:CG:CA)

  • February 2, 2023

    FBI warns Coloradans of cryptocurrency scams

  • February 2, 2023

    Biden Cracks Down on Chinese Tech Investment

  • February 2, 2023

    Why General Motors Shares Climbed in January

  • February 2, 2023

    UW Complements State’s Investment With Controlled Environment Agriculture Center | News

Best Reviews

Latest News

Gold and Precious Metals

Centerra Gold: Oversold Gold Miner With Strong Balance Sheet (TSX:CG:CA)

Adil Abdrakhmanov/iStock via Getty Images Introduction If Covid has proven anything, it is the failure of the Keynesian approach to economic policy. Debt accumulation appears the only constant over the ...
  • FBI warns Coloradans of cryptocurrency scams

    By Megan
    February 2, 2023
  • Biden Cracks Down on Chinese Tech Investment

    By Megan
    February 2, 2023
  • Why General Motors Shares Climbed in January

    By Megan
    February 2, 2023
  • UW Complements State’s Investment With Controlled Environment Agriculture Center | News

    By Megan
    February 2, 2023
  • Recent

  • Popular

  • Comments

  • Centerra Gold: Oversold Gold Miner With Strong Balance Sheet (TSX:CG:CA)

    By Megan
    February 2, 2023
  • FBI warns Coloradans of cryptocurrency scams

    By Megan
    February 2, 2023
  • Biden Cracks Down on Chinese Tech Investment

    By Megan
    February 2, 2023
  • Why General Motors Shares Climbed in January

    By Megan
    February 2, 2023
  • Centerra Gold: Oversold Gold Miner With Strong Balance Sheet (TSX:CG:CA)

    By Megan
    February 2, 2023
  • Australia’s economy: boom or bust?

    By Megan
    September 9, 2019
  • Australian economy suffers virus symptoms

    By Megan
    February 10, 2020
  • Australian economy likely already slowing in Q2 before Delta downturn

    By Megan
    August 30, 2021

Trending News

  • Gold and Precious Metals

    Centerra Gold: Oversold Gold Miner With Strong Balance Sheet (TSX:CG:CA)

    Adil Abdrakhmanov/iStock via Getty Images Introduction If Covid has proven anything, it is the failure of the Keynesian approach to economic policy. Debt accumulation appears the only constant over the ...
  • Investment

    FBI warns Coloradans of cryptocurrency scams

    Coloradans have been scammed out of millions of dollars, the FBI said. DENVER — The FBI’s Denver office is warning the public of a rise in people falling victim to ...
  • Investment

    Biden Cracks Down on Chinese Tech Investment

    The United States and China have spent several years and tens of billions of dollars investing in each other’s technology sectors. Now, after months of escalating moves targeting semiconductors, social ...
  • Stock Shares

    Why General Motors Shares Climbed in January

    What happened Auto stocks were under pressure for much of 2022 on fears that a slowing economy and rising interest rates would eat into demand for autos. A combination of ...
  • Investment

    UW Complements State’s Investment With Controlled Environment Agriculture Center | News

    February 2, 2023 In this photo taken in February 2012, Nate Storey examines lettuce growing in his startup company’s patented vertical towers inside a UW greenhouse. Today, he is the ...
  • About us
  • Contact Us
  • Cookie Policy
  • Disclaimer
  • Privacy Policy
  • Terms and Conditions
© Copyright The Oceania Times. All rights reserved.

SUBSCRIBE TO OUR NEWSLETTER

Get our latest downloads and information first. Complete the form below to subscribe to our weekly newsletter.