Solomon Islands props up budget with China’s US$20 million injection

The Pacific nation’s PM announced the funding after talks with President Xi Jinping in Beijing, hailing China’s ‘transformative’ presence

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Chinese President Xi Jinping shakes hands with Solomon Islands Prime Minister Jeremiah Manele in Beijing on July 12. Photo: Xinhua

Published: 3:26pm, 16 Jul 2024

Solomon Islands will prop up its government budget with a US$20 million injection from China, the developing Pacific state said on Tuesday, as Beijing looks to strengthen a strategic toehold in the region.

Prime Minister Jeremiah Manele announced the funding after talks with President Xi Jinping in Beijing, hailing China’s “transformative” presence in one of the world’s poorest nations.

China has also agreed to fund extensions at Solomon Islands’ only international airport, Manele said, leading work on a crucial piece of national infrastructure.

Solomon Islands has become one of Beijing’s most vocal supporters in the South Pacific since abruptly severing diplomatic ties with Taiwan in 2019.

China has responded by building a major new stadium in the capital Honiara, state-of-the-art health facilities, mobile phone towers, roads and more.

A member of a Chinese medical team offers health consultations to residents in Honiara, Solomon Islands, last month. Photo: Xinhua

“Since the establishment of bilateral partnership with China five years ago, the relationship has grown from strength to strength with China assisting in transformative projects,” said a statement issued by Manele’s office on Tuesday.