{"id":223549,"date":"2025-10-18T20:42:10","date_gmt":"2025-10-18T20:42:10","guid":{"rendered":"https:\/\/www.newsbeep.com\/au\/223549\/"},"modified":"2025-10-18T20:42:10","modified_gmt":"2025-10-18T20:42:10","slug":"chinas-economic-slowdown-has-become-its-diplomatic-weapon-in-the-pacific","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/au\/223549\/","title":{"rendered":"China&#8217;s economic slowdown has become its diplomatic weapon in the Pacific"},"content":{"rendered":"<p class=\"paragraph_paragraph__iYReA\">China&#8217;s rise in the Pacific isn&#8217;t just about aid or diplomacy \u2014 it&#8217;s about survival and power.<\/p>\n<p class=\"paragraph_paragraph__iYReA\">As domestic demand slows and Western tariffs squeeze exports, Beijing has been forced to turn its industrial surplus outward.<\/p>\n<p class=\"paragraph_paragraph__iYReA\">Behind the roads, mines and ports it is building across the Pacific lies a deeper urgency: China has more factories than it has buyers.<\/p>\n<p class=\"paragraph_paragraph__iYReA\">Growth targets remain tied to state-owned enterprises and central planning bodies, even as the population ages and global demand weakens.<\/p>\n<p class=\"paragraph_paragraph__iYReA\">To keep its economic engine running, Beijing has found a new frontier \u2014 the Pacific.<\/p>\n<p class=\"paragraph_paragraph__iYReA\">A region rich in resources, politically fragmented and open to quick results, it offers both economic relief and geopolitical opportunity.<\/p>\n<p class=\"paragraph_paragraph__iYReA\">What looks like generosity is, in effect, a strategy to transform China&#8217;s domestic weakness into global leverage.<\/p>\n<p class=\"paragraph_paragraph__iYReA\">Industrial overcapacity at home becomes infrastructure diplomacy abroad.<\/p>\n<p class=\"paragraph_paragraph__iYReA\">A system built on control becomes an advantage where bureaucracy slows progress.<\/p>\n<p class=\"paragraph_paragraph__iYReA\">And decades of experience in poverty reduction \u2014 and propaganda \u2014 have made Beijing an effective storyteller in the developing world.<\/p>\n<p><img decoding=\"async\" alt=\"Bang Xiao Gold Ridge\" class=\"Image_image__5tFYM ContentImage_image__DQ_cq\"  src=\"https:\/\/www.newsbeep.com\/au\/wp-content\/uploads\/2025\/10\/595368891a1968db53dea7759983ff47\" loading=\"lazy\" data-component=\"Image\" data-lazy=\"true\"\/><\/p>\n<p class=\"Typography_base__sj2RP FigureCaption_text__zDxQ5 Typography_sizeMobile12__w_FPC Typography_lineHeightMobile20___U7Vr Typography_regular__WeIG6 Typography_colourInherit__dfnUx\" data-component=\"Typography\">Behind the headlines stands Gold Ridge Mining Limited, a Chinese-backed firm emblematic of Beijing&#8217;s Pacific approach: build big, move fast, and stay visible. (ABC News: Bang Xiao\u00a0)<\/p>\n<p>Beijing&#8217;s new model<\/p>\n<p class=\"paragraph_paragraph__iYReA\">In August, Solomon Islands Prime Minister Jeremiah Manele hailed the Gold Ridge Mine expansion as &#8220;the beginning of a new chapter&#8221; \u2014 a SBD $6 billion ($1.1 billion) investment that will triple the mine&#8217;s capacity and, by his account, transform the nation&#8217;s economy.<\/p>\n<p class=\"paragraph_paragraph__iYReA\">The projection is bold: around SBD $7.5 billion ($1.4 billion) in annual revenue, SBD $2 billion ($370 million) to government coffers, and more than 4,000 direct and indirect jobs.<\/p>\n<p><a href=\"https:\/\/www.abc.net.au\/news\/2025-09-28\/china-pacific-islands-untold-story-chinese-geopolitics-influence\/105818894\" data-component=\"FullBleedLink\" class=\"RelatedCard_link__rsgR9 FullBleedLink_root__lTw_U interactive_focusContext__yRhc_ interactive_defaults__AKxUU FullBleedLink_showVisited__g3Xvz\" rel=\"nofollow noopener\" target=\"_blank\">In the Pacific, there is &#8216;old&#8217; Chinese and &#8216;new&#8217; Chinese<\/a><\/p>\n<p class=\"Typography_base__sj2RP RelatedCard_synopsis__cFwMW Typography_sizeMobile14__u7TGe Typography_lineHeightMobile20___U7Vr Typography_regular__WeIG6 Typography_colourInherit__dfnUx\" data-component=\"Typography\">China&#8217;s presence in the Pacific is often viewed in the context of geopolitical tension and rivalry. But Chinese people have been in the region for generations \u2014 these are their stories.\u00a0<\/p>\n<p class=\"paragraph_paragraph__iYReA\">It&#8217;s a national milestone \u2014 and a diplomatic one.<\/p>\n<p class=\"paragraph_paragraph__iYReA\">Behind the headlines stands Gold Ridge Mining Limited, a Chinese-backed firm emblematic of Beijing&#8217;s Pacific approach: build big, move fast, and stay visible.<\/p>\n<p class=\"paragraph_paragraph__iYReA\">Director Gao Mingfeng had taken local village representatives to China to tour what he described as &#8220;one of the world&#8217;s best gold-processing operations&#8221; before the mine was purchased.<\/p>\n<p class=\"paragraph_paragraph__iYReA\">They returned persuaded \u2014 for now \u2014 that China can deliver where others stalled.<\/p>\n<p class=\"paragraph_paragraph__iYReA\">That visibility isn&#8217;t limited to gold mines and asphalt.<\/p>\n<p class=\"paragraph_paragraph__iYReA\">Last week, a 340-tonne Chinese-built tunnelling machine, nicknamed the &#8220;steel dragon&#8221;, set sail across the Pacific to join the Tina Hydropower Project near Honiara.<\/p>\n<p class=\"paragraph_paragraph__iYReA\">Manufactured by PowerChina&#8217;s Hydropower No 9 Bureau, the 86-metre-long &#8220;Double Jing No. 1&#8221; will carve the underground tunnels for Solomon Islands&#8217; largest hydropower station \u2014 a project expected to supply 68 per cent of the capital&#8217;s electricity needs.<\/p>\n<p class=\"paragraph_paragraph__iYReA\">The export of such heavy machinery is more than a construction story.<\/p>\n<p class=\"paragraph_paragraph__iYReA\">It&#8217;s an example of how China&#8217;s industrial overcapacity finds purpose abroad \u2014 keeping production lines at home alive while symbolising Beijing&#8217;s promise of partnership.<\/p>\n<p>Loading&#8230;Why China is winning<\/p>\n<p class=\"paragraph_paragraph__iYReA\">Beijing&#8217;s influence is visible not because it gives more, but because it moves faster, demands less \u2014 aside from continuously isolating Taiwan \u2014 and ensures its presence is seen.<\/p>\n<p class=\"paragraph_paragraph__iYReA\">Chinese state-owned enterprises are extensions of the party-state \u2014 able to mobilise finance, labour and approvals without years of parliamentary wrangling.<\/p>\n<p class=\"paragraph_paragraph__iYReA\">They&#8217;re comfortable working where governance is uneven and where relationships matter as much as rules.<\/p>\n<p class=\"paragraph_paragraph__iYReA\">China&#8217;s state-owned enterprises are no strangers to corruption \u2014 they&#8217;ve learned to dance with it.<\/p>\n<p class=\"paragraph_paragraph__iYReA\">For local leaders, that flexibility is appealing.<\/p>\n<p class=\"paragraph_paragraph__iYReA\">Unlike Australia or the United States, which link support to transparency or human rights benchmarks, China focuses on deliverables \u2014 ports, roads, stadiums, mines.<\/p>\n<p><a href=\"https:\/\/www.abc.net.au\/news\/2025-09-26\/vanuatu-tells-australia-to-respect-china-policing-deal\/105820502\" data-component=\"FullBleedLink\" class=\"RelatedCard_link__rsgR9 FullBleedLink_root__lTw_U interactive_focusContext__yRhc_ interactive_defaults__AKxUU FullBleedLink_showVisited__g3Xvz\" rel=\"nofollow noopener\" target=\"_blank\">Vanuatu minister tells Australia to respect China policing deal<\/a><\/p>\n<p class=\"Typography_base__sj2RP RelatedCard_synopsis__cFwMW Typography_sizeMobile14__u7TGe Typography_lineHeightMobile20___U7Vr Typography_regular__WeIG6 Typography_colourInherit__dfnUx\" data-component=\"Typography\">Vanuatu&#8217;s internal affairs minister says Australia needs to respect his country&#8217;s plan to sign a new policing agreement with China, and has taken a swipe at Pacific Minister Pat Conroy as controversy over the proposal rumbles along.<\/p>\n<p class=\"paragraph_paragraph__iYReA\">The work gets done. The ribbon-cuttings follow. The influence sticks.<\/p>\n<p class=\"paragraph_paragraph__iYReA\">Beijing has also been reinforcing security ties, hosting the fourth Ministerial Dialogue on Law-Enforcement and Police Cooperation with Pacific Island countries last week.<\/p>\n<p class=\"paragraph_paragraph__iYReA\">Ministers from Fiji, Solomon Islands, Tonga, Kiribati, Vanuatu, Samoa, Nauru and Papua New Guinea gathered in Jiangsu province to discuss closer policing links and &#8220;professional, efficient, friendly&#8221; cooperation.<\/p>\n<p class=\"paragraph_paragraph__iYReA\">The meeting reflected how China now frames its Pacific ties not only in economic but also in security terms.<\/p>\n<p class=\"paragraph_paragraph__iYReA\">And while Western capitals focus on defence alignments, Beijing&#8217;s messaging leans on &#8220;shared development&#8221;.<\/p>\n<p class=\"paragraph_paragraph__iYReA\">At the celebration of six years of diplomatic relations in the Solomon Islands, China&#8217;s ambassador Cai Weiming praised the &#8220;deepening friendship&#8221; between the two nations and reiterated Beijing&#8217;s role as a &#8220;responsible major power&#8221; \u2014 one that builds infrastructure, not divides alliances.<\/p>\n<p class=\"paragraph_paragraph__iYReA\">However, every kilometre of road and each mining deal carries a political purpose \u2014 the long game is UN votes and the steady isolation of Taiwan.<\/p>\n<p class=\"paragraph_paragraph__iYReA\">The Pacific may look small on a map, but with around a dozen UN member states scattered across its islands, it carries a collective diplomatic weight that Beijing values.<\/p>\n<p class=\"paragraph_paragraph__iYReA\">That strategy was reinforced again this week, when Vice-President Han Zheng met PNG Deputy Prime Minister John Rosso in Beijing.<\/p>\n<p class=\"paragraph_paragraph__iYReA\">Han pledged to &#8220;elevate&#8221; a comprehensive strategic partnership and expand cooperation in trade, infrastructure and climate adaptation \u2014 and Rosso reaffirmed Papua New Guinea&#8217;s &#8220;one-China&#8221; position.<\/p>\n<p>Loading\u00a0Prosperity and unease<\/p>\n<p class=\"paragraph_paragraph__iYReA\">China&#8217;s speed also has a cost.<\/p>\n<p class=\"paragraph_paragraph__iYReA\">In Solomon Islands, community elder Stanley Vatiande warned that the Gold Ridge tailings dam &#8220;could break at any time if a disaster strikes&#8221; \u2014 a real concern in a country prone to floods and earthquakes.<\/p>\n<p class=\"paragraph_paragraph__iYReA\">That tension runs through many Chinese-backed projects: jobs and infrastructure on one side, environmental risk and social unease on the other.<\/p>\n<p class=\"paragraph_paragraph__iYReA\">Prosperity today, uncertainty tomorrow.<\/p>\n<p class=\"paragraph_paragraph__iYReA\">For Australia and the US, the Pacific is no longer a comfortable backyard \u2014 it&#8217;s a battleground of credibility.<\/p>\n<p class=\"paragraph_paragraph__iYReA\">Canberra promotes &#8220;Pacific family&#8221; values and governance reform; Washington adds defence cooperation.<\/p>\n<p class=\"paragraph_paragraph__iYReA\">Beijing counters with visible transformation.<\/p>\n<p class=\"paragraph_paragraph__iYReA\">In places where development has been slow and uneven, a new road can weigh more politically than a promise of reform.<\/p>\n<p class=\"paragraph_paragraph__iYReA\">At the same time, Beijing is repositioning itself as a climate leader \u2014 a message designed to resonate across the islands.<\/p>\n<p class=\"paragraph_paragraph__iYReA\">In late September, China announced new emissions targets: a 7\u201310 per cent cut from peak levels by 2035, non-fossil energy to exceed 30 per cent, and wind and solar capacity to rise to six times the 2020 level.<\/p>\n<p class=\"paragraph_paragraph__iYReA\">The signal to Pacific partners was clear \u2014 China is not just a builder, but also a global climate problem-solver.<\/p>\n<p class=\"paragraph_paragraph__iYReA\">Whether and how Beijing can achieve that goal remains an open question.<\/p>\n<p class=\"paragraph_paragraph__iYReA\">China&#8217;s Pacific playbook works because it turns necessity into advantage \u2014 yet the same visibility that builds trust could also undo it.<\/p>\n<p class=\"paragraph_paragraph__iYReA\">If projects like Gold Ridge and the Tina Hydropower Station deliver growth while managing environmental risk and community consent, Beijing&#8217;s model will embed.<\/p>\n<p class=\"paragraph_paragraph__iYReA\">If they don&#8217;t, the very visibility that fuels its influence could erode it.<\/p>\n<p class=\"paragraph_paragraph__iYReA\">For Pacific nations and for China, that responsibility now lies not in grand ceremonies, but in how the roads hold, how the revenues are shared, and how communities are heard.<\/p>\n","protected":false},"excerpt":{"rendered":"China&#8217;s rise in the Pacific isn&#8217;t just about aid or diplomacy \u2014 it&#8217;s about survival and power. As&hellip;\n","protected":false},"author":2,"featured_media":223550,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[3686,512,37334,135727,43,25502,6827,44,10956,36818,135726,41,39,42,40,9731],"class_list":["post-223549","post","type-post","status-publish","format-standard","has-post-thumbnail","category-headlines","tag-beijing","tag-china","tag-china-economy","tag-gao-mingfeng","tag-headlines","tag-hydropower","tag-mining","tag-news","tag-pacific","tag-solomon-islands","tag-tina-hydropower-project","tag-top-news","tag-top-stories","tag-topnews","tag-topstories","tag-xi-jinping"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts\/223549","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/comments?post=223549"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts\/223549\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/media\/223550"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/media?parent=223549"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/categories?post=223549"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/tags?post=223549"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}