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Regional News

China ‘scare’ shows Australia has ‘dropped the ball’ in the Pacific

SYDNEY (The New Daily/Pacnews) — A diplomatic row over China’s growing influence over Pacific island nations has prompted calls for Australia and New Zealand to consider merging their economies with their smaller neighbors.

The suggestion follows reports Australian officials are concerned about China’s growing presence in the Pacific.

Fijian Prime Minister Frank Bainimarama, left, and Chinese President Xi Jinping in July 2015.  Getty ImagesFijian Prime Minister Frank Bainimarama, left, and Chinese President Xi Jinping in July 2015. Getty Images

Minister for International Development and the Pacific Concetta Fierravanti-Wells last week accused China of building “roads to nowhere” and “useless buildings” in the Pacific through its concessional loans and aid programs.

She said she was concerned some countries were taking on debts they could not afford to repay. Privately, officials said they were concerned that projects were being favored to funnel money directly to the region’s leaders.

Her criticisms have been blasted by both China and some Pacific nations themselves.

Meanwhile, Prime Minister Malcolm Turnbull is set to invite Japanese defense forces to exercise in Darwin as a security alliance demonstration for China’s benefit.

Graeme Dobell, journalist fellow for the defense industry think tank Australian Strategic Policy Institute, told The New Daily that the recent remarks by Senator Fierravanti-Wells highlighted the need for Australia and New Zealand to think seriously about integrating with all regional island economies.

“It might take a bit of a China scare to get us to pay proper attention to the near neighborhood we often overlook,” Dobell said.

“The China bogey does help Australia focus on the geopolitics on its doorstep.

“The big new thought that Australia is starting to play with is to offer not just partnership to the South Pacific, but economic and security integration.

“The proposal to integrate the islands with Australia and New Zealand is one of the ideas of the recent defense White Paper that hasn’t got much attention. But it’s a biggy with long-term prospects.

“Australia can offer but it’ll be up to the islands to commit.”

The defense White Paper promised that Australia would be the region’s “principal security partner” and Dobell said the integration policy recognized the need for a matching economic and social guarantee.

The island nations of Tonga, Fiji, Vanuatu, Solomon Islands, Samoa, Nauru, Kiribati, Tuvalu and New Caledonia have an estimated population of 2.3 million. Papua New Guinea has eight million.

Samoa’s Prime Minister Tuilaepa Sailele said China aid, second only to Australia’s aid budget gave assistance that Australia could not provide.

The minister’s remarks were insulting, destructive to the relationship and implied that Pacific leaders lacked integrity, he said.

Columnist Dan McGarry of The Daily Post Vanuatu reported: “China’s record with infrastructure projects is spotty to be sure. But Fierravanti-Wells should do more homework before diving into the debate.

“Australia’s major roads project in Vanuatu, proudly unveiled in 2013 by then Foreign Minister Bob Carr, is a laughing stock.

“This shambolic operation, which should have been completed by now, is still lurching along with no end in sight.”

But it is China’s influence with the Fijian government of Prime Minister Frank Bainimarama which is particularly intriguing to regional observers because of corruption risk.

Last year the Australian Broadcasting Corporation’s investigative radio program Background Briefing reported that China was now Fiji’s biggest source of direct foreign investment.

Fiji had signed five MOUs with China including one which allowed free entry for Chinese people into Fiji and joint ventures in fishing in Fijian waters.