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US officials warn of China's debt diplomacy in Pacific

September 10, 2024 | Natural Resources: House Committee, Standing Committees - House & Senate, Congressional Hearings Compilation, Legislative, Federal


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US officials warn of China's debt diplomacy in Pacific
During a recent government meeting, discussions centered on the growing influence of China in the Pacific region, particularly through what has been termed \"debt diplomacy.\" Officials expressed concerns that China's loans to Pacific nations often come with onerous repayment terms, potentially compromising the sovereignty and dignity of these countries. This situation poses a significant challenge for nations that have traditionally aligned with the United States.

Ambassador Coyota of Palau highlighted his country's unique position, noting that Palau does not have any debt with China and proudly recognizes Taiwan. He emphasized the need for increased U.S. presence in the region, particularly through the Coast Guard, to deter Chinese incursions into their waters. Coyota's remarks underscored the importance of U.S. support in maintaining regional stability and sovereignty.

Ambassador Sorum from the Federated States of Micronesia (FSM) elaborated on the complexities of their relationship with China, stating that while FSM has diplomatic ties with China, it has consciously opted to accept only grants rather than loans. Sorum reaffirmed that the relationship with the United States remains paramount, indicating a clear preference for U.S. support over Chinese influence.

The meeting also celebrated the swift approval of the Compact of Free Association (COFA) agreement, which underscores the U.S. commitment to its Pacific allies amid rising tensions with China. Representative Gonzales Colon expressed gratitude for the collaborative efforts that led to this significant agreement, highlighting its importance in countering Chinese expansion in the region.

Overall, the discussions reflected a strategic focus on enhancing U.S. partnerships in the Pacific, addressing the challenges posed by China's growing influence, and reinforcing commitments to regional allies.

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