Modern Australian
Men's Weekly

.

China's push into PNG has been surprisingly slow and ineffective. Why has Beijing found the going so tough?

  • Written by Ian Kemish, Former Ambassador and Adjunct Professor, School of Historical and Philosophical Inquiry, The University of Queensland

Chinese activity in Papua New Guinea was not the only factor behind Australia’s Pacific “Step-Up”. As a former high commissioner to PNG, I know it followed serious deliberations about Australia’s overall strategic imperatives in the region.

But China’s engagement with our nearest neighbour was in the minds of many when Prime Minister Scott Morrison announced the foreign policy initiative in November 2018, pledging to

take our engagement with the region to a new level.

Chinese President Xi Jinping was about to make a state visit to Port Moresby, before joining other world leaders at the APEC Summit there. China had been busy repairing roads and constructing an international conference centre in the PNG capital ahead of the meeting, along with a six-lane highway leading to the parliament.

A Chinese hospital ship had just conducted a well-publicised “humanitarian mission” to PNG. And Prime Minister Peter O'Neill had recently signed up to the Belt and Road Initiative, fuelling concern that PNG’s growing financial exposure to China might be converted to Beijing’s strategic advantage.

China's push into PNG has been surprisingly slow and ineffective. Why has Beijing found the going so tough? Xi Jinping was the first Chinese leader to visit PNG when he arrived for the APEC summit in November 2018. Mick Tsikas/AAP

Xi then used the opportunity of his state visit to pledge an additional US$300 million in concessional loans to the country.

Several Papua New Guinean friends commented then that none of this activity would be of lasting benefit to the struggling developing country. But it certainly captured public attention, and suggested a renewed strategic intent on China’s behalf to boost its influence in the region.

Read more: Despite its Pacific 'step-up', Australia is still not listening to the region, new research shows

Recent setbacks in China’s outreach

Eighteen months later, China is still looking for ways to engage with PNG, motivated by interest in both its abundant natural resources and key strategic location. But these efforts sometimes seem uncoordinated, and Beijing has suffered some significant setbacks.

China has been surprisingly slow to respond at critical moments. For instance, PNG officials became frustrated with bureaucratic stalling in early 2019 as they sought to follow up on Xi’s promised loan, and Australia ultimately stepped in to supply the required A$440 million.

Canberra also outmanoeuvred Huawei’s bid to lay undersea high-speed internet cables to PNG and the neighbouring Solomon Islands.

And this year, China has not sent any meaningful signal of solidarity to PNG since the onset of COVID-19 – just proforma PPE donations. Western institutions like the IMF are instead stepping in with emergency financial assistance but, so far at least, China has been nowhere to be seen.

Anti-Chinese sentiment flares up

The recent experience of China’s Zijin Mining Group points to another constraint – the anti-Chinese sentiment that sometimes lurks below the surface in PNG.

The PNG cabinet decided in April not to renew the gold mining lease held jointly by Zijin and Canada’s Barrick Gold at Porgera in the Highlands region. Prime Minister James Marape announced Porgera would instead transition to national ownership.

A letter from Zijin Chairman Chen Jinghe to Marape was then leaked. Chen warned if Zijin’s investment was not “properly protected”, he was

afraid there will be significant negative impact on the bilateral relations between China and PNG.

This provoked visceral anti-Chinese sentiment and praise for Marape’s stance on social media in PNG. Speculation last week the government was looking to sell the mine to another Chinese group sparked a further wave of anti-Chinese feeling – this time critical of Marape.

The tone of some of these messages brought to mind the violent attacks against Chinese and other Asian small business owners at past moments of economic hardship and local tensions in PNG.

China's push into PNG has been surprisingly slow and ineffective. Why has Beijing found the going so tough? A Chinese store owner taking shelter during anti-Chinese protests in PNG in 2009. ILYA GRIDNEFF/AAP

Zijin is not the first Chinese resource company to face difficulties in PNG. In 2004, China’s Metallurgical
Construction
Company (MCC) secured the agreement of then-Prime Minister Michael Somare to buy the Ramu nickel mine in Madang province.

The company learned quickly that an agreement with the head of government is not enough. MCC did not plan adequately for engagement with landowners, provincial authorities and environmentalists, and inflamed local tensions by using imported Chinese labour.

MCC spent almost two years in court pitted against these groups, to its substantial cost.

Read more: Everything but China is on the table during PNG prime minister's visit

China is not giving up

PNG can be a hard place to operate. As the Australian government and many businesses and NGOs have found, success requires sustained effort with multiple stakeholders.

Chinese companies are not giving up. China Mobile reportedly looked at taking over domestic mobile carrier Digicel earlier this year, and Shenzhen Energy is persevering with its stalled US$2 billion “Ramu 2” hydro power project, given initial approval by the O'Neill government in 2015.

Industry sources report the current government, eager to announce employment-generating projects, is considering moving to implementation stage after some hesitation.

Read more: In the post-APEC scramble to lavish funds on PNG, here's what the country really needs

A deal has also recently been signed allowing PNG seafood exports to China.

China has every right to pursue investments in the region, and PNG is entitled to diversify its external links. Beijing will likely make further advances, but on current form these will likely be more opportunistic than strategic.

Australia should engage China positively in PNG, consistent with its bilateral interests in both Port Moresby and Beijing. It should also build confidently on the advantages that flow from geographic proximity and a long, overall positive relationship with its friends across the Torres Strait.

Authors: Ian Kemish, Former Ambassador and Adjunct Professor, School of Historical and Philosophical Inquiry, The University of Queensland

Read more https://theconversation.com/chinas-push-into-png-has-been-surprisingly-slow-and-ineffective-why-has-beijing-found-the-going-so-tough-140073

Why Ceiling Fans Remain One of the Most Effective Solutions for Year-Round Comfort

Creating a comfortable indoor environment without relying heavily on energy-intensive systems is a priority for many households. Installing ceiling ...

Why an Industrial Air Compressor Is Vital for Modern Manufacturing

In many industrial environments, compressed air is as essential as electricity or water. An industrial air compressor provides the power needed to ...

Why Commercial Carpet Cleaning Services Matter for Professional Spaces

Clean carpets play a major role in shaping how a commercial space looks, feels, and functions. Commercial carpet cleaning services are essential fo...

5 Things to Consider Before Choosing a Commercial Painter

Choosing the right painter for a commercial business can be challenging. Regardless of the type and the size of the property, all commercial project...

Why Medical Fitout Melbourne Practices Rely on for Modern Healthcare Spaces

A well-planned medical fitout Melbourne is essential for creating healthcare environments that support patient care, clinical efficiency, and regula...

Luxury Builders Melbourne Crafting Homes Defined by Design and Detail

Building a premium home is about far more than size or appearance. It is about precision, craftsmanship, and a deep understanding of how refined spa...

Electric Sliding Door Solutions for Modern Living and Commercial Spaces

The way people move through spaces has changed dramatically over the years, and the electric sliding door has become a defining feature of that evol...

Australia’s New Fast Track to Advanced Care in Vietnam

For many Australians, the decision to seek medical care abroad often begins with a specific feeling: the quiet frustration of waiting. According to ...

Cardboard Boxes: A Practical Packaging Solution for Modern Businesses

Reliable cardboard boxes play a vital role in how goods are stored, protected, and transported across industries. From small retailers to large-sca...

The Rise of Smart Homes in Australia: What’s Worth Investing In?

Australia is in the midst of a home technology revolution. From energy efficiency to integrated security, today’s homeowners are transforming thei...

Winter Hairstyling Tips to Prevent Dryness

Winter can be particularly harsh on your hair. Cold air outside, dry indoor heating, and frequent temperature changes can strip moisture from the ha...

Short Term Loans in Australia: Practical Insights for Borrowers and Finance Professionals

Short term loans play a crucial role in Australia’s personal finance landscape. They are designed to cover short-term expenses, unexpected bills, ...

Best EPD Consultants in Australia

Environmental Product Declarations (EPDs) play an increasingly important role in the Australian construction, manufacturing, and infrastructure sect...

I/O Controller And Its Role In Modern Industrial Automation

Industrial automation relies on a range of advanced technologies to ensure precision, speed, and reliability in day-to-day operations. Among these t...

Hydraulic Systems And Their Importance In Modern Industry

A hydraulic system plays a vital role in powering machinery, controlling movement, and delivering high-force performance across countless industrial...

Why Australian Businesses Are Having a Second Think About Digital Growth

Running a business these days is a whole lot different to how it was even a few short years ago. Customers are better informed, there's more competi...

Restaurants Risk Compliance Issues Amid Commercial Plumber Shortage

As demand for housing, roads and facilities increases, so does the demand for trade workers. According to Infrastructure Australia, the construction i...

The Importance Of A Professional Medical Fitout Melbourne For Modern Healthcare Facilities

Healthcare environments must operate with precision, efficiency, and a strong focus on patient comfort. A well-planned medical fitout Melbourne hel...