-
Advertisement
Pacific nations
AsiaDiplomacy

Solomon Islands drops Chinese tech giant Huawei for billion-dollar undersea cable, signs Australia

It comes as Canberra refocuses its foreign aid programmes to win hearts and minds in the island nations of the Pacific, and as Beijing also flexes its muscle in the region

Reading Time:2 minutes
Why you can trust SCMP
Prime Minister of the Solomon Islands Rick Houenipwela and Australian Prime Minister Malcolm Turnbull shake hands ahead of a bilateral meeting in Canberra. Australia has stepped in to majority fund an undersea high-speed communications cable to the Solomon Islands. Photo: AFP
Agence France-Presse

Australia will help fund and build an undersea communications cable to the Solomon Islands, it was agreed Wednesday, after the Pacific nation was convinced to drop a contract with Chinese company Huawei.

The impoverished country and Huawei signed a deal in late 2016 to construct the fibre-optic cable from Australia to Honiara to improve its often unreliable internet and phone services.

But Solomon Islands Prime Minister Rick Houenipwela said last week there had been a change of heart following “some concerns raised with us by Australia”, without elaborating.

Advertisement

The move comes with Australia refocusing its foreign aid programmes to win hearts and minds in the island nations of the Pacific, as China flexes its muscle in the region.

It pledged more than A$1.3 billion (US$970 million) in its national budget last month to fund projects such as the communications cable, which will also link Papua New Guinea.

Advertisement

Canberra and other regional capitals have become increasingly alarmed at Beijing’s push into the Pacific through “soft diplomacy”, which could potentially upset the strategic balance in the region.

Advertisement
Select Voice
Select Speed
1.00x