Australia has accused China of misrepresenting aid projects in the Pacific, claiming that China is taking undue credit for initiatives funded by the Asian Development Bank (ADB), which are significantly supported by Australian taxpayer dollars. This allegation highlights the ongoing geopolitical struggle for influence in the region.
On the island of Bougainville, an autonomous region of Papua New Guinea, the China Railway Construction Corporation (CRCC), a state-owned enterprise, has commenced work on strengthening the runway at Kieta-Aropa, near the largest city. Despite the project’s funding by the ADB, the Bougainville government’s announcement of the airport upgrade made no mention of the bank, instead highlighting the involvement of CRCC.
During an inauguration ceremony at the airport last month, the president of Bougainville and the prime minister of Papua New Guinea were seen breaking ground with shovels while wearing hard hats featuring the CRCC logo. An ADB sign was visible in the background, underscoring the complex dynamics of project branding in the region.
Australia’s Response to Chinese “Branding”
Pat Conroy, Australia’s minister for the Pacific, expressed frustration over the “branding” of multilateral development projects, emphasizing that the projects are funded by the ADB, with significant contributions from countries like Japan and Australia. Conroy stated,
“It’s not Chinese assistance. A Chinese state-owned enterprise won a contract under the Asian Development Bank … that project is funded by the ADB.”
Conroy has lobbied the ADB to refine its procurement processes to prioritize quality over cost and to limit nationalized branding of projects, reforms to which the bank has agreed. Australia is the second-largest contributor to the ADB after Japan, underscoring its vested interest in how projects are represented.
Geopolitical Implications in the Pacific
The contest for influence extends beyond Bougainville, which is on a path to independence from Papua New Guinea by September 2027. Conroy remarked,
“We’ve been very clear that there’s a permanent state of contest in the Pacific, that Australia is seeking to be the partner of choice for every Pacific nation and that China is seeking a role there as well.”
Emma Veve, director general of the ADB’s Pacific Department, stated that the bank is expanding its presence across the region with robust support from countries like Australia.
“ADB is proud of its work and committed to ensuring that project information is visible to the public during the execution of construction works and that there is a precise acknowledgment of project funding sources.”
Meanwhile, concerns over Chinese influence are growing among traditional allies, particularly in terms of security. Since 2019, three Pacific countries have shifted their formal recognition from Taipei to Beijing, and China has established police training programs in several Pacific nations.
Bougainville’s Path to Independence
In the United States, the conservative Heritage Foundation views Bougainville’s potential independence as a strategic opportunity for America. The foundation warns that the US must engage with Bougainville or risk allowing China to gain a foothold in a crucial area of the Indo-Pacific.
Bougainville’s deputy president, Patrick Nisira, dismissed concerns over Chinese influence as being driven by “western media sources.” He argued that the lack of options from traditional development partners and the appeal of Chinese partnerships make such opportunities worth considering for the benefit of the people.
Oliver Nobetau, project director of the Australia-Papua New Guinea Network at the Lowy Institute, predicted that Bougainville will declare independence on September 1, 2027. However, he expressed skepticism about the success of such a move, stating,
“What happens next is the great uncertainty … nobody knows what’s going to happen on [2 September].”
Historical Context and Australia’s Role
Bougainville is located less than 1,500 kilometers from the Australian coast, sharing a complex history with Australia. The island was part of the Australian-controlled Territory of Papua and New Guinea, and its history includes a brutal civil war sparked by disputes over the Panguna mine, once operated by Anglo-Australian miner Rio Tinto.
Australia played a significant role in brokering the peace deal that ended the conflict. Since the Bougainville Peace Accords, Australia has been the island’s largest external development funder, dedicating significant resources to infrastructure projects.
Despite a 2019 referendum in which 97.7% of Bougainvilleans voted for independence, Australia has maintained a neutral stance on the island’s independence. However, statements by Australian officials have sometimes been perceived as siding with Papua New Guinea, which opposes secession.
Bougainville’s president, Ishmael Toroama, criticized Australia’s approach, accusing it of making “piecemeal contributions” and using “boomerang aid” to exert influence. Conroy reiterated that the question of Bougainville’s political future is a matter for its people and Papua New Guinea to decide.
