In 2024, the trade relationship between China and Papua New Guinea (PNG) has seen remarkable growth, with bilateral trade surpassing K17.8 billion (about US$4.39 billion). PNG is celebrating a trade surplus of more than K7.5 billion (approximately US$1.85 billion), marking a significant achievement in the economic partnership between the two nations.
Chinese investments in PNG have become increasingly diverse, covering sectors such as infrastructure, energy, minerals, telecommunications, agriculture, forestry, and fisheries. Key projects driven by Chinese enterprises include the Ramu Nico mine, Porgera Mining operations led by Zijin Mining Group, and the Edevu hydro-power station.
Chinese Ambassador to PNG, Yang Xiaoguang, noted the strong and evolving nature of this bilateral relationship, stating that PNG stands as China’s largest trading partner among Pacific Island nations. With over 400 million middle-income earners, China presents considerable market opportunities for PNG’s natural resources like natural gas, minerals, and agricultural products.
On the export front, PNG mainly sends liquefied natural gas (LNG), timber, and agricultural goods to China, while importing mechanical and electrical goods, textiles, and steel. The economic cooperation treaty signed in 2023 between PNG and China further solidifies their mutual commitment to enhancing the trade dynamic.
Ambassador Yang also pointed out China’s significant financial support to PNG, which includes billions in grants and concessional loans aimed at bolstering various sectors such as infrastructure projects, healthcare, and education.
Looking ahead, the potential for further growth remains bright, as both countries stand to gain from continued collaboration. This partnership could foster shared prosperity in the region as PNG harnesses Chinese investments to achieve its development aspirations.
The encouraging sentiment surrounding these expanding trade relations illustrates the vital role of international cooperation in driving economic progress and enhances the optimism for a prosperous future for both China and PNG.
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