Why PNG is now China’s number one priority

It is also clear the PNG Prime Minister sought additional loans to help fund the massive budget deficit.

What has to concern Australia and our allies is that the PNG Government no longer seeks to disguise the growing reliance on China……and with national elections just months away there iis virtually no debate in the campaign over the extent of China's influence.

That might change when the campaign proper begins – but its depressing that no political leader or party is prepared to challenge the growing dependence on China.

The problem political leaders face is that the China involvement is now so extensive that it would be politically risky to oppose it.

It is also clear China is interested in acquiring a share in PNGs minerals, oil and gas resources.

While no projects are readily available, China is playing the long game when it comes to acquiring resources.

The other ongoing concern has to be the proposed major fisheries/ports project on Daru and the initial direct cash injection into the Ihu-Kikori special economic zone.

The current PNG Foreign Minister is pushing the development of this project in his electorate given he is facing the voters in just 3 months time.

The question readers may wel be asking is why China has decided to give its priority to PNG?

I think the answer lies in the size of the PNG economy and the fact it is resource rich – and especially the resources China needs.

The Minister for Agriculture is pushing hard to give China a guaranteed share of the nations coffee and cocoa.That is why he wants a central government controlled agency to handle the export of unprocessed agricultural resources.

The other lucrative area is forestry. China today takes 80 per cent of unprocessed logs but it wants more.