The Solomon Islands has secured a $66 million loan from China to finance the construction and supply of 161 mobile towers by Huawei.
Under the agreement, the nation will receive a 20-year concessional loan from the China Export-Import Bank (Exim Bank of China). The Solomon Islands government described the arrangement as “a historical financial partnership” between the two countries.
Western officials have expressed concern that China’s expanding ties with the Solomon Islands, including a separate security pact, could be used to establish a military presence in the country. Prime Minister Manasseh Sogavare has repeatedly denied that establishing a Chinese military base is a possibility.
The growing financial and security relationship with China has alarmed the United States and its regional partners. Australia, which had planned to build six telecom towers in the Solomon Islands, has also voiced concerns about Beijing’s increased influence.
In 2018 the Solomon Islands awarded Huawei a contract to build an undersea telecommunications cable. Australia later intervened to jointly fund that cable project, reflecting regional sensitivities about the company’s involvement.
Since 2019 the Solomon Islands has shifted diplomatic recognition from Taiwan to China. Meanwhile, Huawei has faced international scrutiny and restrictions over security concerns.
The United States placed Huawei on its Entity List in 2019, restricting U.S. companies from sharing certain technologies with the firm without explicit permission. In 2020 the United Kingdom ordered telecom operators to exclude Huawei equipment from their 5G networks.
The Solomon Islands government says approximately 48% of the new Huawei towers will be completed before the country hosts the Pacific Games in November 2023.
“This will help people in rural areas to enjoy the Games, even if they don’t come to [the capital] Honiara,” said McKinnie Dentana, Permanent Secretary of the Ministry of Finance.
Last year the country experienced widespread rioting directed at Prime Minister Sogavare. This month Sogavare proposed amending the constitution to delay a national election scheduled before the Pacific Games, arguing the country lacks the capacity to run both events concurrently. Opposition leader Matthew Wale dismissed the proposal as a “lame excuse.”
Earlier this year the Solomon Islands and China signed a controversial security agreement amid their deepening partnership. A leaked draft of that agreement suggested Chinese security forces could be called in to help quell unrest, a clause that drew significant international attention and concern.
(Photo by Gilly Tanabose on Unsplash)
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