China-US rivalry casts a shadow over APEC meeting in PNG


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PORT MORESBY (Reuters) – An Asia-Pacific Economic Cooperation (APEC) summit held Sunday in Papua New Guinea was dominated by major differences between the United States and China.

Papua New Guinean Prime Minister Peter O Neill, US Vice President Mike Pence, Australian Prime Minister Scott Morrison, New Zealand Premier Jacinda Ardern reviewing Japanese Prime Minister Shinzo Abe, during the signing of an electricity agreement reached between Australia, Japan and New Zealand, United States for Papua New Guinea, at the summit of the APEC in Port Moresby, Papua New Guinea, 18 November 2018. REUTERS / David Gray

Competition between the United States and China on the Pacific was also highlighted, with Western allies launching a coordinated response to China's Belt and Road program, promising to jointly fund an electrification and Internet project. $ 1.7 billion in Papua New Guinea (PNG).

Tonga, for their part, joined the Belt and the Road and got a postponement of payment on a Chinese loan, said a Tongan official.

US Vice President Mike Pence, after leaving Port Moresby, capital of PNG, drew up a list of disputes between the US government and China, one day after directly criticizing his program Belt and Road.

"They start with business practices, tariffs and quotas, forced technology transfers, theft of intellectual property. This goes beyond the freedom of navigation in the seas and concerns about human rights, "said Mr. Pence to the reporters who accompanied him.

Trade discrepancies make it difficult to draft a summit communiqué that members will sign, as Chinese officials have been pushed back to meet with PNG Foreign Minister Rimbink Pato on the issue.

Pato confirmed to Reuters that the Chinese authorities wanted to see him, adding that they had not made the "necessary arrangements" for a meeting.

He said the multilateral trading system was the sticking point in drafting the communiqué.

"If there are last-minute problems, then, like what we are doing now, we will discuss it and try to reach a compromise," he said.

At a Pacific Islands forum in September, a similar dispute arose when the Chinese envoy asked to be allowed to address the forum before the Tuvalu Prime Minister.

PNG ELECTRICITY PROJECT

PNG, host country of APEC, has 8 million inhabitants, four-fifths of whom live outside urban areas and have poor infrastructure.

The United States, Japan, Australia, and New Zealand unveiled a $ 1.7 billion plan to provide electricity and the Internet for much of PNG as the first step in a plan aimed at countering the expenses and political influence of the Belt and roads in China in the region.

According to the Western Allies Plan, 70% of the PNG population would have electricity by 2030, up from 13% now, and was presented as evidence of its commitment to the Pacific Strategic Region.

China has been successful, with Tonga joining Belt and Road and getting a five-year loan extension from a concessional loan just before the start of repayment of their principal.

Chinese President Xi Jinping, who arrived here Thursday in Port Moresby, has been hailed by PNG officials and sparked concern in the Western West during a meeting with leaders of the Pacific Islands. during which he launched the "Belt and Road" initiative.

China has invested in development projects in the region, including the construction of a large hydropower plant in PNG.

The Western plan for PNG came as diplomatic sources told Reuters that Australia and the United States were worried about the debt burden that the Chinese plant could bear.

Belt and Road was first proposed in 2013 to extend land and sea links between Asia, Africa and Europe, with billions of dollars of infrastructure investment from China.

Australia, a faithful ally of the United States, has for decades enjoyed a largely unparalleled influence among the Pacific Island States. China has only recently focused its attention on the region with a large number of bilateral funding agreements with economies in distress.

On Saturday, Pence directly attacked Belt and Road, saying countries should not accept debts that compromise their sovereignty.

The Chinese Foreign Ministry responded by saying that no developing country would fall into the debt trap simply because of its cooperation with Beijing.

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"On the contrary, cooperation with China is helping these countries to build their independent capacities and levels of development and improve the lives of local people," Ministry spokeswoman Hua Chunying said in a statement.

In Port Moresby, Foreign Minister Pato said his country did not need to take sides.

"For us, we welcome Chinese investment, we welcome US investment. Our foreign policy is to be friends for all, enemies for anyone. "

Report from Charlotte Greenfield and Tom Westbrook to PORT MORESBY, Michael Martina and Xu Muyu at BEIJING; Written by Jonathan Barrett, Colin Packham; Edited by John Mair, Robert Birsel

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