Posted By Staff Reporter
International Trade and Investment Minister Richard Maru announced that China is rapidly emerging as Papua New Guinea’s most crucial trading partner, with a trade surplus valued at about K4.1 billion. Minister Maru made this statement following a brief meeting with Chinese Deputy Commerce Minister Tang Wenhong in Port Moresby yesterday. He expressed determination to enhance and deepen the relationship with China, aiming to solidify it through a Free Trade Agreement pending the outcome of a joint feasibility study, expected to conclude in July. Maru elaborated, "We have started the process with PNG advancing K1 million last year to commence the joint study, and we are happy that China will make their K1 million available so we can complete the study by July."
While acknowledging Australia as the largest investor in Papua New Guinea, with investments exceeding K60 billion, Maru noted that PNG's exports to Australia in 2022 stood at AU$1.6 billion (approximately K3.9 billion), primarily consisting of gold and other precious metals. However, Australia's exports to PNG were significantly lower, at AU$95.9 million (about K363 million), indicating a trade imbalance in Australia's favor that has persisted for decades. In contrast, trade between PNG and China has favored PNG in recent years, with a surplus balance of trade recorded from 2017 to 2021. In 2020 alone, PNG exported K6.7 billion, imported K2.6 billion, resulting in a trade surplus of K4.1 billion. China ranks third as the top export destination for PNG products and second as the top import source for PNG, highlighting the economic significance of trade with China. Maru emphasized, "This indicates that trade with China is economical. We have realized that our future in terms of exports lies with China." He highlighted China's growing economy and domestic demand, driven by its vast population of 1.41 billion, positioning the country as a significant source of global demand. Consequently, PNG is eager to strengthen and deepen its relationship with China, focusing on trade and investment. Maru also welcomed the announcement of three weekly flights from China to PNG, foreseeing an influx of investors and tourists. However, he stressed the need for first-class hotels, casinos, and other facilities to attract the anticipated 100 million Chinese tourists to consider PNG as an attractive tourism destination. The growing economic partnership between Papua New Guinea and China reflects evolving dynamics in the region, with both countries poised to benefit from increased collaboration and trade. Also read Comments are closed.
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