Papua New Guinea and the US-China Rivalry: A Balancing Act Guided by “Friends to All, Enemies to None”

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As tensions between the United States (US) and China deepen across the Indo-Pacific, Papua New Guinea (PNG) finds itself navigating an increasingly complex geopolitical landscape. For PNG, balancing the competing influences of these superpowers offers both economic opportunities and strategic dilemmas, affecting everything from infrastructure to foreign policy and education. PNG’s response is grounded in a foreign policy principle established in 1975, “Friends to all, enemies to none.” This guiding tenet, designed to safeguard PNG’s independence and sovereignty, is just as relevant today as it was in the Cold War.

China’s involvement in PNG’s development has grown rapidly in recent decades, with Beijing’s investments extending to infrastructure, mining, and education. The Belt and Road Initiative has financed projects such as roads, bridges, and telecommunications networks, establishing China as an essential partner in PNG’s economic growth. In extractive industries, projects like the Ramu NiCo mine, operated by a Chinese state-owned enterprise, have provided local jobs but raised concerns over environmental degradation and labour practices.

 

Upgrade of the Daulo section of the highlands highway by contractor China Wu Yi
 

Alongside infrastructure, China has increasingly invested in educational initiatives to build its soft power. Through scholarships, Chinese language programs, and Confucius Institutes, China is cultivating familiarity with its language and culture among PNG’s young leaders. While these programs offer valuable skills and international experience, they also invite questions about PNG’s growing exposure to Chinese influence.

In response, the US has renewed its commitment to the Pacific, PNG included, aiming to counterbalance China’s influence. Under the Biden administration, the US has emphasized regional partnerships, opening new embassies, re-engaging with the Pacific Islands Forum, and supporting projects on climate resilience and infrastructure. The Indo-Pacific Strategy highlights a stable Pacific as essential to regional security and positions the US as a reliable ally.

For PNG, the United States’ renewed engagement offers welcome options but also underscores the need to strike a delicate balance. PNG’s longstanding ties with the US. and Australia remain critical to its security framework, but China’s economic importance continues to grow. Navigating these relationships while adhering to its principle of “Friends to all, enemies to none” is essential for PNG to maintain its autonomy.

PNG’s approach to the US-China rivalry reflects this commitment to balance. China’s demand for PNG’s raw materials and agricultural exports has strengthened the two countries' economic ties. Simultaneously, PNG relies on Australia and the US for security cooperation, regional stability, and climate support. This diversified approach has helped PNG preserve its options without aligning too closely with any one partner.

Yet this balance is not without its challenges. Concerns over sovereignty and dependency are emerging, especially as Chinese loans and infrastructure projects spark public debate. Projects like the Ramu NiCo mine, while economically beneficial, bring environmental and social issues that have led some PNG citizens to question the broader impact of Chinese investments. Meanwhile, the growing presence of Chinese-sponsored language programs and scholarships adds further complexity to PNG’s position, as these educational initiatives shape the perspectives of future PNG leaders.

PNG’s engagement with both superpowers offers significant potential but also presents challenges. The environmental and labour impacts of some Chinese-operated projects, such as Ramu NiCo, have intensified local scrutiny of Chinese investments. Meanwhile, the rising prominence of Chinese educational programs provides valuable skills but may subtly influence PNG’s policy landscape in ways that some view as a calculated soft power strategy by Beijing.

However, superpower competition also brings substantial opportunities for PNG. Increased development assistance, climate funding, and educational exchanges from both the US and China can serve PNG’s interests if managed carefully. By leveraging these initiatives, PNG has the potential to foster economic development, build climate resilience, and enhance infrastructure, all while preserving its autonomy. PNG’s open diplomatic channels with both powers offer a strategic asset, enabling it to set the terms for external support in ways that align with its national priorities.

PNG’s approach to the US-China rivalry demonstrates a skilled balancing act, guided by the enduring principle of “Friends to all, enemies to none.” As competition between the US and China reshapes the Indo-Pacific, PNG’s strategy of diplomatic engagement, educational partnerships, and infrastructure development will play a pivotal role in preserving its sovereignty and advancing its goals.

In navigating this geopolitical landscape, PNG’s adherence to its core foreign policy principle will define its path forward, securing economic, educational, and security benefits while safeguarding its autonomy. This careful balancing act positions PNG to make strategic gains without compromising its independent stance amid intensifying superpower competition.

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