CHINA SPENDS ON INFLUENCE
IN OCTOBER 2015 the Northern Territory Government announced its curious decision to lease Darwin port to Chinese company Landbridge for 99 years.
Since August 30, a naval vessel from the Chinese People’s Liberation Army has been participating in Exercise Kakadu, hosted by the RAN and controlled from Darwin.
This massive biennial event involves 23 ships and submarines, 21 aircraft and 3000 personnel and observers from 27 nations. China’s participation in Exercise Kakadu is a further example of China’s apparent desire to increase its military influence in the greater Pacific region.
China’s construction of military facilities on disputed islands in the South China Sea has escalated tensions in a region already anxious over North Korea’s erratic militarism.
Including China in Exercise Kakadu might be intended to send a diplo- matic message to China it is an ally in regional affairs rather than a threat, but there should be deeper concerns.
While experts may disagree what percentage of its GDP China spends on defence in comparison with other nations, it is spending of another kind which should cause concern.
There is no doubt Chinese President Xi Jinping intends his legacy to be a more powerful China with considerable military and economic influence around the globe.
He has been achieving this by “lending” large amounts of money to developing countries through what is known as the Belt and Road initiative.
By lending countries money to construct infrastructure, China subsequently seizes those assets when impoverished countries are no longer able to service the debts.
A classic example has been Sri Lanka’s Hambantota port, which China recently seized when the host country defaulted on the loan. “Seized” is probably too harsh a word, though the reality is Sri Lanka ceded the facilities to a company linked to the Chinese government in a 99- year lease. Sounds eerily familiar.
China argues that these infrastructure projects are to open trade routes through Asia, Africa and the Pacific, but their military potential is obvious.
More concerning are Chinese overtures to build facilities including some with military purposes in countries in Australia’s area of military and economic interest.
For example, China has proposed redeveloping naval facilities on Manus Island in PNG. More recently used by Australia as an offshore facility to house people trying to circumvent Australia’s formal immigration protocols, it was once an important defence asset.
Just 1900km from Townsville, Manus was a strategic naval and air base, a way point for ships and aircraft to refuel when deploying to South East Asia or the northern Pacific. It still retains that potential, and is an asset which Australia should be redeveloping rather than allowing China to do so, then later control it by debt trap. In April, China made overtures to Vanuatu about developing a military base. Vanuatu is already indebted to China for massively upgraded port facilities. Tonga and Fiji are also in debt distress to Chinese lenders.
Australia should be more proactive in rebuilding relationships with traditional regional allies before China usurps that role.