China’s President Xi Jinping has promised new investments in Tonga during a meeting with King Tupou VI in Beijing, reaffirming the growing partnership between the two nations. The commitment comes as China seeks to enhance its influence across the Asia-Pacific region, where small island nations like Tonga play a key strategic role.
Expanding Economic Cooperation
During talks held at the Great Hall of the People, Xi assured King Tupou that China would continue to support Tonga’s economic and social development. While no specific funding amount was disclosed, Xi emphasised that both countries have built a friendship that has endured through challenges. He stated that China would continue to support Tonga in maintaining its independence and sovereignty, regardless of global changes.
China and Tonga plan to deepen cooperation in several sectors, including trade, agriculture, fisheries, tourism, and climate action. The partnership will also include discussions on aligning development strategies to promote sustainable growth and resilience.
Tonga’s Debt Challenge
Tonga, home to around 108,000 people, owes about $112 million to China’s Export-Import (EXIM) Bank. These debts, largely accumulated from loans taken nearly two decades ago, now account for 48% of Tonga’s total external debt. Repayments surged last year due to a loan used to rebuild the capital’s business district after the 2006 riots. The growing burden of debt has become a major issue in Tonga’s 2025 budget discussions.
Tonga has sought Australia’s assistance in negotiating debt restructuring with China. It also looks to both Canberra and Washington for support to strengthen infrastructure and address the escalating risks of climate change.
Balancing Partnerships in the Pacific
China views Tonga as an important participant in its Belt and Road Initiative, which the island nation joined in 2018. During the meeting, King Tupou expressed gratitude for China’s continued support in improving Tonga’s infrastructure.
Meanwhile, Australia has committed A$27.1 million (US$17.49 million) in aid this year to help Tonga adapt to climate challenges. The United States has also pledged $4.1 million for 2024.
Both Xi and Tupou witnessed the signing of a new “framework agreement” designed to enhance economic ties, allowing flexible negotiations and aiming to expand trade between the two nations.
(with inputs from Reuters)
