PNG-Sino experience

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The recent geopolitical power play in the region is exciting. One fact that we cannot dispute is the growth of China. The Middle Kingdom has really change the rules of the game in the Asia-Pacific region.

One notable development is the fact that PNG is now the first Pacific Island nation to join China's One Belt One Road Initiative formally. The Prime Minister went to China with a mission to sign the deal and came back a victor.   

One Belt One Road
As mentioned in the Business Insider:
Cai from Lowy Institute explains that:

The Business Insider also outlines that the focuses of the policies are in infrastructure, transportation and energy. We have already seen both positive and negative changes associated with the One Belt One Road Initiative in the Asia-Pacific region.

China's industrial capacity
In reference to Morgethau's 9 elements of national power, China has developed most or all of the elements of national power. In particular, industrial capacity together with smart economic policies have really turned the country into the factory of the world.

The ability of the Chinese people to work hard must also not be ignored. This ability has turned China into an economic powerhouse.

Japan has for so long dominated the vehicle market with their brands like Toyota, Nissan, Suzuki, Mazda, Mitsubishi and Isuzu. China has now entered the market with their companies like Great Wall Motors and JMC Motors.

In a few years time, we might see competition in the market between Japan, South Korea and China. This is beneficial for PNG because it will help decrease the amount of money needed to buy a new car. If new cars are sold for a reasonable price then there is no need to buy a secondhand Japanese recondition car.

China has acquired raw materials from around the world and turned the raw materials using its industrial plants into finish products. China's national power has increased due to the development of this element and also the development of the other 8 elements.

Industrial capacity is the driving force behind the One Belt One Road Initiative. China's promise to share its technology and finance with other countries will be repaid with access to raw materials. Thus, the cycle of industrial activity will continue   

PNG-Sino experience
In energy, the Prime Minister launched a K463 million 130kv transmission lines and substations projects to service the Highlands region in June. This project will light up homes and contribute to the growth of business activities up in the Highlands.


For infrastructure, the new conference center in Waigani is iconic. Built for the APEC meeting, the building will now host a lot of other national events. Such infrastructure is needed in a growing economy like PNG.


Apart from the conference center, a six-lane highway was also opened in Port Moresby on the same day. The cost of the highway was about US$33 million according to the Post Courier.



The role played by Chinese banks is vital in the PNG-Sino experience. The EXIM Bank and the Asian Infrastructure Investment Bank (AIIB) have and will continue to fund various projects connected to the One Belt One Road Initiative.

To conclude, according to the Lowy Institute, China spent $858.4 million on 27 projects in PNG between 2006 and 2016. What about 2017-2018? 

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