Marape-Rosso Government Sets Solid Foundation for Partnership with China

Minister Maru said the two countries had set the basis for a solid and unprecedented relationship because of the following decisions by their leaders and Governments:

1. PNG closing its Taiwan Mission to reaffirm the “One China” policy;

2. Chinese Government had now offered land for PNG to build a chancery in Beijing and a Consulate General in Guangzhou to increase its presence in China;

3. The Guangdong Provincial People’s Government, at its own cost, had subsidized the China Southern Airlines with direct flights between Guangzhou and Port Moresby three times a week; and

4. PNG currently negotiating with major Chinese companies to bring in foreign direct investments in key sectors like mining and petroleum, manufacturing, energy, and the cement industry.

Minister Maru reiterated that PNG was looking at building relationship with new partners, beyond its traditional partners.

“As I stated at the 41st Australia- PNG Business Forum last week, despite 41 years of partnership with Australia and nine resource projects, our economy has not grown. It now sits at only US$ 32 billion while Australia’s GDP is US$ 2.1 trillion, New Zealand’s is about US$ 252 billion, the Philippines at US$ 437 billion, Singapore at over US$ 501 billion, and Japan’s sitting at over US$ 4 trillion.”

“Australia is our biggest investor with over AU$27 billion investments in the country mainly in the mining and petroleum sector. While we appreciate that Australia has invested this much in PNG, many of these investments are not in our priority sectors including agriculture, manufacturing, forestry, fisheries, services, and downstream processing. We are now very aggressively looking for trading partners who will help us in growing the investments in areas that are critical to us, and allow us to export our products to their countries,” said Minister Maru.

He said this decision was important because it aligned with the country’s new policy “Strategic Partnership for Security and Economic Prosperity”.

“China becomes number one in terms of economic prosperity because it is our biggest export market valued at over US$ 3.5 billion followed by Japan at US$ 3 billion and Australia at US$ 2.19 billions. China will continue to be an important market with its growing economy coupled with soaring domestic demands stimulated by its 1.41 billion people. It has the capacity to import all our products like cocoa, fish, coffee, and others. PNG offers investment opportunities, and China offers greatest market opportunities for our products. We have a mutual interest to enhance and deepen our relationship. I will give my focus on starting negotiations for a Comprehensive Economic Partnership Agreement between our two countries when the NEC provides the appropriate support,” said Minister Maru.

The Minister made two important announcements during his visit:

1. The incorporation of a PNG – China Business Council this year; and

2. The inaugural PNG – China Business Forum and Trade Expo to be hosted in October this year in Guangzhou, China with the lead organizer to be the Department of International Trade and Investment supported by both PNG and Chinese Governments and the private sector.

He also met with the Chairman of a major Chinese multinational real estate developer headquartered in Guangzhou who was willing to offer PNG an office space to lease for its Consulate-General in Guangzhou, including accommodation for the staff.

“We plan to have our Consulate-General officially opened by Prime Minister Marape on his way to the APEC Economic Leaders Meeting in November this year,” said Minister Maru.

“While we may have other bilateral Agreement with other countries, China will remain the most important partner in the area of trade and investment. We have a relationship that we have built over a long time. We only want to enhance and deepen that relationship,” he said.

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