China downplays Solomon Islands lease row

Chinese company’s attempt to lease island of Tulagi deemed illegal by government, but Beijing says it is normal for business investments to run into difficulties

Row comes soon after Pacific nation switched diplomatic recognition from Taipei to Beijing

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Honiara, the capital of Solomon Islands, which last month switched recognition from Taipei to Beijing. Photo: Xinhua

Published: 6:52pm, 29 Oct 2019Updated: 10:55pm, 29 Oct 2019

China’s foreign ministry has insisted there is nothing unusual about businesses running into difficulties when investing abroad after a company’s efforts to lease an island in the Solomons were rebuffed.

The Solomon Islands government said last week that a deal signed by one of its provinces to lease the entire island of Tulagi to a Chinese company was unlawful and should be terminated – a move welcomed by United States.

Details of the long-term lease between the Solomons’ Central Province and China Sam Enterprise Group were made public soon after the Pacific nation switched diplomatic recognition to Beijing from Taiwan in September.

Speaking at a daily briefing, Chinese Foreign Ministry spokesman Geng Shuang noted there had been a “fair amount” of media attention surrounding the case, and that it was Beijing’s understanding that the local government had not sought permission from the central government.

China has always told its companies they must respect local laws and international rules when operating abroad, and that they were encouraging the Chinese company involved in this case to talk to the Solomons government to “appropriately” resolve the issue, he added.

“I’d like to say here that it is very normal for Chinese companies investing in or looking for commercial opportunities overseas, including in the Pacific island state region, to maybe have some issues in this process,” Geng said.