The volume of trade between China and Papua New Guinea in 2024 exceeded K17.8 billion (US$4.39 billion)– with a surplus of more than K7.5 billion(US$1.85 billion) on the PNG side.
In recent years, more Chinese businesses have come to PNG for trade and investment in areas such as infrastructure construction, energy, minerals, power, telecommunications, agriculture, forestry, fisheries, wholesale and retail.
Investments focused on minerals, retail, infrastructure and forestry.
Major Chinese investment projects in PNG include the Ramu Nico, the Porgera Mining (through Zijin Mining Group who owns 50 percent of both New Porgera Limited and Barrick Niugini Limited), and the Edevu hydro-power station.
Chinese Ambassador to PNG Yang Xiaoguang told The National that after five decades of diplomatic ties, the China-PNG relations in trade, commerce and security had maintained a steady and sound growth.
“PNG is China’s largest trading partner and largest investment destination among Pacific Island countries,” he said.
“With more than 400 million middle-income population, China’s huge consumption market has opened the door for PNG’s natural gas, minerals and agriculture, forestry and fishery products.
“China’s main exports to PNG include mechanical and electrical products, textiles and garments, and steel.
“The main categories of imports from PNG to China include LNG, timber and wood products, nickel and nickel products, and agricultural and fishery products.”
In 2023, PNG signed an economic cooperation treaty with China, solidifying the countries’ commitment to cooperate in the areas of trade and commerce.
Yang added that China had provided billions of (U.S) dollars of grants and concessional loans to PNG, delivering more than 60 projects in areas including infrastructure, education, health, agriculture and public services.
Examples include the Independence Boulevard, Spring Highway, International Convention Centre, Sir John Guise Stadium and Butuka Academy in Port Moresby.
China has also provided concessional loans to support PNG to build the national power grid, national telecommunication base stations, Kumul submarine cable network, digital television transformation project and other infrastructure projects.
