Tuesday, August 6, 2013

Why Are the Chinese Interested In Tonga?

[caption id="" align="alignright" width="300"]Embassy of China in the Kingdom of Tonga Embassy of China in the Kingdom of Tonga (Photo credit: Wikipedia)[/caption]

It’s well known that the Chinese, and the Indians are investing heavily in Africa.  But what are the Chinese doing in the South Pacific island of Tonga?

Early last month, the New Zealand government suspended aid to the small South Pacific island of Tonga.  The spat is apparently over a plane, a “gift” from the Chinese

government that is yet to meet international safety standards.  Despite the fact the plane isn’t in service, a New Zealand-based company that had been operating domestic flights in Tonga shut down operations, claiming that it couldn’t compete with an airline that was receiving free planes from a foreign government interested in leasing land from the Tongan government.  The suspension of aid, mostly aimed at developing infrastructure to help the ailing tourist industry comes at a particularly inconvenient time.  The whale watching season is getting underway, and the lack of any planes to ferry tourists around is bound to play havoc with local economies.

Concern over the aircraft that was donated to RealTonga, the rival homegrown passenger service was not unfounded.  Since 2009, that particular model has been involved in seven “incidents”, three so serious that the aircraft concerned had be written off.  In a statement, Foreign Affairs Minster, Murray McCully said "Significant safety issues have been raised regarding the plans of the new air service operator [to use the Xian MA60]. Our tourism support will remain on hold until safety issues are resolved to the satisfaction of respected international aviation experts,"

Unsurprisingly, given the quality of Chinese buildings, and the general behavior of Chinese tourists abroad some Tongans are underwhelmed by what the Chinese have done so far.  When the BBC’s John Pickford visited the island, he met with cabinet minister Clive Edwards, who diplomatically described some of the Chinese built buildings as “a disappointment”.  Chinese made roads lack the proper drainage systems, so when the rainy season hits, roads become impassable.  Massive, government buildings, built in the typical grandiose Chinese style aren’t designed to cope with the tropical heat and they’re impossible to keep cool in the summer.

The Chinese invasion of Tonga hasn’t gone smoothly.  In 2001, 600 of them were given a years grace to leave after the Chinese government expressed concerns over the high number of robberies that targeted Chinese businesses.  Tensions between the Chinese and Tongans came to a head again in 2006, when rioters looted Chinese owned shops and left 8 people dead.  Much of the central business district was destroyed, prompting New Zealand and Australia to send in troops.  China has been working hard to improve it’s image with the locals.  More than 300 Chinese fled the country, fearing that riots were racially motivated.

In a small poll conducted in 2011 by the Pacific Institute of Public Policy, China came out ahead, perceived as a more important trading partner than Australia or New Zealand, but the negative sentiment towards droves of Chinese immigrating to the country was apparent.  Speaking to AFP, Derek Brien, head of the organization that conducted the survey said "there's this disconnect between a perception that China aid, China diplomacy, is good and better than say Australia and New Zealand because the Chinese aid and development comes without strings attached to it.  And yet there is this backlash going on about the rise in migration. It's something we need to understand more."

China is investing in South Pacific islands in the same way that it invests in African republics, extending it’s influence in an irresistible mix of aid, loans and equipment.  At the time of writing, China had taken over 60% of Tongan state debt, with the government owning nearly $108million to the Chinese Import-Export Bank.

In return for muscling in on the previous relationship Tonga had with New Zealand, the Chinese hope for subsidies on Tongan fish stocks, helpful support in the UN and first refusal on their potential vast mineral resources to shore up the rare earth mineral industry back in the mainland.  Unfortunately, the gifts, like the MA60 turboprop, without western safety approval remain useless white elephants that the Tongans are stuck with as the Chinese move over in droves to capitalise on the growing demand for cheap everyday goods that Chinese factories turn out by the million.  Batteries and toothpaste are most sought after, and if local Chinese store owners don’t have it, they know someone who has it.


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