News

China's investment in Papua New Guinea


12 September 2012

Dr Graeme Smith, Postdoctoral research fellow of the centre discussed Chinese investment in Papua New Guinea in the recent East Asia Forum Quarterly.

"The implications of Chinese investment in Papua New Guinea are more complex than media reports of 'neo-colonial slavery' suggest. Some analysts have called on the Chinese government to do more to rein in the broader effects of this sudden increase in ODI, such as illegal immigration and the reluctance of Chinese infrastructure companies to employ local labour, and there is evidence that elements within the Chinese state share these aspirations." Dr Smith argues.

"But as Chinese ODI becomes an increasingly organic phenomenon in Papua New Guinea and beyond, the leverage of the Chinese state is becoming ever more limited."

 

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