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China has pledged renewed investment in Tonga during talks between President Xi Jinping and King Tupou VI, highlighting the island nation's strategic importance in the Asia-Pacific region. Tonga remains heavily indebted to China's EXIM Bank, with loan repayments making up nearly half of its external debt. The two leaders discussed enhancing cooperation across trade, infrastructure, agriculture, fisheries, tourism, and climate resilience. Tonga continues to receive development aid from Australia and the United States. A framework agreement was signed to further economic collaboration and expand trade between China and Tonga.
China has committed to providing fresh investment in Tonga during a meeting between President Xi Jinping and King Tupou VI in Beijing. The move comes as China seeks to strengthen its influence across the Asia-Pacific region, competing with Western nations for strategic partnerships. Advertisement
Tonga, home to around 108,000 people, holds significance due to its location, U.N. voting power, and seabed mineral resources. President Xi emphasized that China would continue assisting Tonga's economic and social development, though no specific investment figure was disclosed. He described China and Tonga as longstanding friends and reiterated that China would support Tonga in safeguarding its sovereignty, regardless of global changes.
The two leaders discussed expanding cooperation in multiple sectors, including trade, investment, agriculture, fisheries, tourism, and climate response. Tonga remains heavily indebted to China's EXIM Bank, with outstanding loans from infrastructure projects spanning two decades. Current data indicates that Tonga owes Beijing around USD 112 million. Loan repayments to China represent 48% of Tonga's total external debt, with obligations from a post-2006 riots reconstruction loan accounting for roughly two-thirds of these repayments.
Tonga has approached Australia for assistance in restructuring its Chinese debt and has sought aid from Canberra and Washington to enhance climate resilience and fund infrastructure projects. This year, Australia allocated AUD 27.1 million (around USD 17.49 million) to Tonga for climate adaptation initiatives, while the United States provided USD 4.1 million in 2024.
The meeting also included the signing of a framework agreement to strengthen economic ties. According to China's commerce ministry, the agreement allows for flexible negotiations on specific issues and aims to expand trade between the two nations. Tonga joined China's Belt and Road Initiative in 2018, positioning itself as a potential model partner for China's global infrastructure efforts.
King Tupou VI expressed gratitude for China's ongoing support in developing Tonga's infrastructure, underscoring the island nation's reliance on foreign aid and investment to sustain its development and manage debt obligations.
Source Reuters
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