FT News Briefing China’s moves in the South Pacific
Apr 27, 2022
Tech stocks are facing a significant decline, casting a shadow over the market. Brexit is creating hurdles for small UK businesses, leading to a steep drop in trade with the EU. Meanwhile, China's aggressive strategy in the South Pacific raises eyebrows, particularly its security pact with the Solomon Islands. Local perspectives reveal political divisions surrounding China's influence, as residents grapple with the dual challenges of geopolitical tension and climate change. It's a fascinating blend of economics, politics, and global issues.
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Brexit's Impact on UK-EU Trade
- Brexit has significantly impacted UK-EU trade, with smaller businesses disproportionately affected.
- Larger companies adapted to new bureaucracy, while smaller businesses struggle with red tape, hindering growth and international trade.
Strategic Importance of the Solomon Islands
- The Solomon Islands' strategic importance lies in its control over vast ocean areas, crucial for China's military presence in the South Pacific.
- China's presence could allow them to monitor US military installations and project power, competing with US dominance in the Pacific.
Chinese Company's Island Lease Attempt
- China Sam Enterprises, linked to Chinese security forces, attempted to lease Tulagi Island in the Solomon Islands for 75 years.
- The lease, initially for an economic zone, raised concerns due to the lack of oil resources in the area and potential military implications.