Sino-Pacific Relations - Regional Policies of The People's Republic of China

Regional Policies of The People's Republic of China

In 2003, the People's Republic of China announced it intended to enhance its diplomatic ties with the Pacific Islands Forum, and increase the economic aid package it provided to that organisation. At the same time, PRC delegate Zhou Whenzhong added: "he PIF should refrain from any exchanges of an official nature or dialogue partnership of any form with Taiwan".

In 2006, Chinese Premier Wen Jiabao announced that the PRC would increase its economic cooperation with Pacific Island States. The PRC would provide more economic aid, abolish tariffs for exports from the Pacific's least developed countries, annul the debt of those countries, distribute free anti-malaria medicines, and provide training for two thousand Pacific Islander government officials and technical staff.

Also in 2006, Wen became the first Chinese premier to visit the Pacific islands, which the Taipei Times described as "a longtime diplomatic battleground for China and Taiwan". Similarly, according to Ron Crocombe, Professor of Pacific Studies at the University of the South Pacific, "There have been more Pacific Islands minister visits to China than to any other country".

In 2007, Xinhua, the official press agency of the PRC, stated that Pacific Islands Forum member countries had "spoke highly of the generous assistance China has provided to the region over the past many years and expressed the hope for a further enhanced cooperation with China".

In December 2007, Dr John Lee of the magazine Islands Business asked himself and his readers:

"Why is China so interested in the Pacific? After all, despite the differences in size, population, wealth, and influence between China and islands in the region, the Chinese have literally rolled out the red carpet for Pacific leaders. Meetings between Chinese and Pacific leaders are not perfunctory ‘meet and greets’ in the bland boardrooms of hotels. They are often elaborate state functions with all the bells and whistles that state meetings can offer. In a word, the Chinese want ‘influence’. China sends more diplomats around the world than any other country. In terms of the Pacific, there is a more disturbing game being played out, namely the ‘chequebook diplomacy’, that is taking place between China and Taiwan in their competition for diplomatic recognition at the expense of the other. Taiwan matters profoundly to China—and it is largely why China is interested in the Pacific."

That same month, John Henderson of Canterbury University stated that, in his view, many Pacific Islanders are worried "that their livelihood is being taken away by Chinese traders coming in, often getting in buying political privileges, playing a role in rigging elections". Henderson suggested that the 2006 anti-Chinese riots in Tonga and Solomon Islands could be repeated in countries such as Fiji and Vanuatu. He added that this might lead the PRC to increase its role in the region further, in order to protect ethnic Chinese Pacific Islanders. A spokesman for the Chinese embassy in Fiji, Hu Lihua, responded by stating: "China does not pose a military threat to any other country. China opposes all forms of hegemonism and power politics and will never seek hegemony or engage in expansion." A representative of Fiji's Chinese community similarly rejected the idea that there might be anti-Chinese riots in Fiji, and added: "The Chinese in Fiji have an excellent relationship with locals and we contribute toward the economy. We have been successful in understanding local customs. Many of us have learnt the language and have assimilated."

The final report of the April 2008 Australia 2020 Summit addressed China's influence in the Pacific in the following terms:

"It was noted that so far China did not seem interested in exporting its political values. Its interaction with the region was economically focused or motivated by rivalry with Taiwan.

Noting China’s growing military power and its emerging role as a major aid donor in the region, participants agreed that while China’s visibility had increased rapidly there remained uncertainty over what it was seeking to achieve, especially in the long term. Securing energy supplies was one obvious goal. One strand of thought that had emerged was that the Chinese themselves were not entirely clear about their aims in the region."

In June 2008, a report from the Lowy Institute stated that China's aid policy towards the Pacific was almost certainly aimed solely at encouraging Pacific countries not to grant diplomatic recognition to Taiwan, and that there was no sign of the PRC attempting to increase its military influence or its access to the region's natural resources. Reuters reports that, according to the Institute's findings, "China's chequebook diplomacy in the South Pacific and secrecy over its aid programme to small island nations is having a destabilising impact on the region", due to "concerns that dollar diplomacy was influencing local politics." A spokesman of the Chinese Foreign Ministry responded: "This assistance is on the basis of mutual benefit. It must help the local economy to develop and promote people's livelihoods. China would never interfere in these countries' internal affairs."

In June 2009, parliamentary delegations from four Pacific Island countries were jointly received by Wu Bangguo, Chairman of the Standing Committee of the National People's Congress. The delegation comprised Isaac Figir, Speaker of the Congress of the Federated States of Micronesia, Tu'ilakepa, Speaker of the Legislative Assembly of Tonga, Manu Korovulavula, head of the Public Accounting Commission of Fiji, and Billy Talagi, head of the Legislative Committee of Niue (a dependent territory of New Zealand). The delegation also met Chinese Premier Wen Jiabao, who spoke of increased "economic and trade cooperation"; Xinhua reported that the Pacific Island legislators "expressed appreciation for China's assistance" and "reiterated their countries' adherence to the one-China policy".

In August and September 2010, the People's Liberation Army Navy began an unprecedented "goodwill visit" to its Pacific allies, touring Papua New Guinea, Vanuatu, Tonga, New Zealand and Australia. Its aim, as reported by the People's Daily during the ships' four-day stop in Tonga, was "enhancing friendship and strengthening military cooperation".

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".

In May 2011, addressing the University of South Pacific in Suva, PRC Ambassador to Fiji Han Zhiqiang stated that Sino-Pacific cooperation had resulted in "plenty of substantial outcomes and benefits for the people in this region". He indicated that the volume of trade between the PRC and Pacific Island countries had increased by about 50% between 2009 and 2010, reaching € 2.46 billion. The value of China's exports to the region that year was € 1.74 billion (up by 42% from 2009), while the value of its imports from the Pacific Islands was € 730 million, up almost 100%. Chinese investments in the Pacific Islands in 2010 -primarily to Samoa, the Marshall Islands, Papua New Guinea and Fiji- had reached almost € 72 million.

In April 2012 China continued to widen its diplomatic influence with loans and aid with the region.