Concern is growing about the debt owed by Pacific Islands, including Tonga and Papua New Guinea, to China for infrastructure projects. According to Reuters, China has lent $1.3bn over the past decade, and Tonga's situation has brought the issue to the fore. It must begin repaying $5.7m of debt, with the first instalment of $115m set for this year, unless it can persuade China to forgive what it owes. However, the US and allies have suggested China's financial benevolence in the Pacific Islands is an attempt to gain hold of the region, particularly Taiwan, something Beijing has denied.
Concern is growing about the debt owed by Pacific Islands, including Tonga and Papua New Guinea, to China for infrastructure projects. According to Reuters, China has lent $1.3bn over the past decade, and Tonga's situation has brought the issue to the fore. It must begin repaying $115m of debt, with the first instalment of $5.7m set for this year, unless it can persuade China to forgive what it owes. However, the US and allies have suggested China's financial benevolence in the Pacific Islands is an attempt to gain hold of the region, particularly Taiwan, something Beijing has denied.