Pacific nations reject China security pact

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As an enticement, Beijing had been offering millions of dollars in financial assistance.

Talks in Fiji between Chinese Foreign Minister Wang Yi and leaders from the small island nations failed to reach an agreement, in a high-profile diplomatic setback for Beijing.

As an enticement, Beijing is offering millions of dollars in financial assistance, the prospect of a potentially lucrative China-Pacific islands free trade agreement and access to China's vast market of 1.4 billion people.In a recent letter to fellow leaders, David Panuelo, the President of the Federated States of Micronesia, warned the offer was "disingenuous" and would "ensure Chinese influence in government" and "economic control" of key industries.

Papua New Guinea, Samoa and the Federated States of Micronesia were said to be among those concerned about the proposals, along with Taiwan-recognising Palau, which was not invited. Speaking from Suva, Wang made the face-saving announcement that the 10 countries had agreed to memorandums of understanding on China's "Belt and Road" infrastructure initiative.

China has said it will release a "position paper" highlighting the proposals to the public in the coming weeks.Western powers have bristled against China's move into the region, with the US State Department warning South Pacific nations to be wary of "shadowy, vague deals with little transparency". Most capitals are keen to maintain amicable ties with China, balancing relations between Beijing, Washington, Canberra and Wellington, while focusing on the more urgent threat of climate change and day-to-day economic issues.

 

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