Friday, May 09, 2008

The "Sinicizing" of the South Pacific

With China now making its presence felt in Africa and South East Asia, it's easy to overlook the expanding Chinese presence in the more lightly-populated South Pacific.

In a region traditionally dominated by France, Australia, America and New Zealand, China is now the the main source of both immigrants and outside money. Mineral resources such as Copper, Zinc, Nickel, Manganese and Cobalt are luring Chinese companies to Papua New Guinea and the Solomons, while East Asian entrepreneurs are increasingly taking the place of Indian businessmen in Fiji, and dominating the retail sector in Tonga and Samoa.

According to Asia Times journalist Bertyl Linder, in an aptly titled article "The Sinicizing of the South Pacific," the vacuum left by westerners in mineral and timber rich Papua New Guinea is now being filled by the Chinese, who are willing to put with the anarchic conditions prevailing there:

"There is nothing particularly unusual about the food at Ang's Chinese restaurant. In fact, the roast duck served there is excellent and the Lonely Planet guidebook assures you that its hot-and-sour soups are especially tasty. Rather, it's the eatery's ambiance that is a tad offsetting. The yard is surrounded by high walls topped with razor wire and surveillance cameras. Two security guards watch the entrance and open the sliding gate only if the callers appear to be genuine dining customers. Those allowed entry are met by another steel door guarded by more watchmen, who not only shut but lock the door behind the restaurant's guests. Only then may they enjoy Ang's oriental fare in relative peace.

Welcome to Port Moresby, the capital of Papua New Guinea - and, according to the Economist Intelligence Unit, the worst place to live among 130 world capitals and major cities. Major hotels advise their guests not to venture out on foot - even in broad daylight in the poshest downtown areas.

Unemployment rates here hover anywhere between 70% and 90% and crime has become a way of life for gangs of young men born into a culture where tribal warfare, vendettas and violence are deeply ingrained. Add the easy access to firearms in urban areas, and it's not surprising that most of Port Moresby's homes resemble high security prisons and that the 50,000 Western expatriates who lived there when independence was achieved from Australia in 1975 have since dwindled to a few thousand.

But, as the chatter in Ang's restaurant indicates, newly-arrived mainland Chinese migrants are fast filling the gap as the impoverished country’s leading businessmen, contractors and import-export dealers. Throughout history, Chinese migrants have shown a willingness to endure harsh living conditions to prosper economically in new countries - and the Chinese in Port Moresby are no exception."
As in Africa, Chinese success is being aided by their no-nonsense, pragmatic approach to business and politics which isn't lumbered by western concerns for ethical governance and business transparency. Currently it's estimated there are around 10,000 Chinese immigrants in Papua New Guinea, although the number may be greater since local politicians are assisting many Chinese to enter the country without valid visas.

However, while local elites may been keen on attracting Chinese businessmen, many ordinary Papuans and Solomon Islanders aren't quite so keen on Asian immigration. For example, in 2006 there were widespread anti-Chinese riots in the troubled Solomon Islands, which were contained by Australian police forces.

It isn't just in Melanesia though, where the Chinese are clashing with locals, two years ago rioting also occurred in the Tongan capital Nuku' alofa, in which at least eight ethnic Chinese were killed and numerous Chinese businesses destroyed. At present the Chinese own about 30 percent of businesses in the Tongan capital.

Being a successful market dominant minority, the Chinese are generating resentment among the less commercially orientated South Sea Islanders. As Linder points out:

"The business acumen of Chinese entrepeneurs stirs intense rivalry in the South Pacific, where initiative is often stifled by the custom of having to share profits with your extended family."

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