China spending falls in Pacific says Lowy Institute New Blog Post

Posted on 30 November 2022

China's development spending has fallen in the Pacific region, according to Australia's Lowy Institute. 

Five years after the Papua New Guinea government announced a long-awaited $US2.6 billion upgrade of the nation's potholed highway network, funded by development loans from China, the project has stalled. 

Alexandre Dayant, a project director with the Lowy Institute, said China's spending over the past decade had not always lived up to its promises. 

According to Lowy's research, Chinese development aid spent in the Pacific region - made up of grants and concessional loans to fund construction, infrastructure and other projects - fell to $US188 million in 2020, from a peak of $US334 million in 2016.