China Urged to Curb Risky Lending to Vulnerable Pacific Nations

Caixin Global | Oct 21, 2019 at 2:35 PM
  • China should put the brakes on its lending in the South Pacific to avoid lumping economically vulnerable nations with unsustainable debt.
  • Six South Pacific governments are debtors to China: Cook Islands, Fiji, Papua New Guinea, Samoa, Tonga, and Vanuatu.
  • As China spreads its influence beyond the South China Sea to the South Pacific — a region comprised of island nations traditionally under U.S. hegemony and on Australia’s doorstep — officials in Washington and Canberra are increasingly concerned Beijing may use debt through infrastructure loans as leverage to establish military bases in the region.