Pacific Island countries have abundant energy, mineral and marine resources, but badly need to develop infrastructure, energy and industries. China, with its large market, enjoys prominent advantages in the field of capital, technology and management. Mutual cooperation can therefore ensure complementary development.

The promotion of the Belt and Road Initiative and improved bilateral relations between China and many countries has actually made it easier for Chinese companies to enter these markets. Since establishing diplomatic ties with some of the Pacific Island nations in the 1970s, China has helped them in their self-development by increasing economic assistance. It has made key contributions to help the countries alleviate poverty and improve local people's well-being.

By investing and operating in infrastructure, mining, energy and fishery sectors, Chinese enterprises have helped improve the Island nations' infrastructure, promoted resource exploitation, driven industrial development, enhanced tax revenue and boosted employment. This has also laid the foundation for greater cooperation between China and those countries.

Large engineering enterprises such as China Railway Engineering Corporation have undertaken major projects of building roads, bridges, terminals and airports there. Enterprises such as China Hydropower Engineering Consulting Group Corporation have implemented hydropower projects. New energy companies such as Singyes Solar have invested in power generation projects including those for new energy, thus helping the countries overcome energy shortage and achieve energy transformation.

Leading Chinese-funded enterprises have also participated in investment and exploitation of mineral resources in the island nations by purchasing or holding shares. Some Chinese-funded sea food enterprises have contributed greatly to cooperation on fishing between China and those countries.

Chinese enterprises now see new opportunities of entering the markets in those countries. Since the initiative was proposed, diplomatic ties between China and these countries have been upgraded to comprehensive strategic partnership, based on mutual respect and common development, which benefits Chinese enterprises. Recently, the Solomon Islands and Kiribati established and restored diplomatic ties with the People's Republic of China.

Between 2011 and 2017, China's assistance to these countries reached $1.22 billion, surpassing that of New Zealand and making China the second-largest aid donor, after Australia. Moreover, China's aid has risen across the board while major aid donors like Australia, New Zealand and the United States have reduced their assistance greatly. Amid sluggish global trade growth, bilateral trade between China and the island countries has achieved rapid growth, as trade in goods between both sides increased from $4.25 billion to $7.26 billion, up 70 percent year-on-year.

In recent years, China's move in international and regional affairs has received high acclaim, particularly in the way it is coping with climate change. While the United States announced its withdrawal from the Paris Agreement, China, as a responsible power, has made the island countries more willing to improve mutual cooperation.

Having a weak industrial foundation, the Pacific Island nations lack the capability to develop on their own. Since World War II, they have failed to develop independently under the aid system led by Western countries.

Therefore, China and these countries need to focus on industries that enjoy right conditions and call for urgent development. They should allow enterprises to play a leading role, operate in accordance with market rules, accelerate to establish a mutually beneficial and win-win development mode and enhance the countries' ability to grow independently to achieve sustainable development. At present, industrial cooperation between Chinese enterprises and the Pacific island countries focuses simply on completing projects. Such primary mode with a short industrial chain and weak driving forces can barely help the countries establish an independent modern economic system. China and those countries need to further improve communication on policies to allow Chinese enterprises to promote industrial development modes involving whole industrial chains and participate in local industrial operation.

Qualified Chinese tourism enterprises can be encouraged to explore local tourism resources as wholly Chinese-owned enterprises or joint ventures cooperating with local enterprises.

China and the island countries can engage in all-round cooperation to explore tourism resources, develop tourism facilities, manage tourism enterprises and train talents. Chinese fishing and sea food enterprises can be supported to promote the integrated development mode of fishing and breeding, improve their overseas service bases and drive the development of downstream industrial chains, including supply, processing, ports, cold storage and logistics.

Second, enterprise alliances can be formed to promote the integrated development of ports, industrial zones and factories by effectively leveraging advantages of different enterprises. China's experience in developing industrial zones can be tapped to develop industrial, logistics as well as export and processing zones near ports, improve comprehensive services of ports and enhance policies and facilities for industrial development.

All this can help them build a modern and international industrial cooperation platform as well as core engine of industrial and economic development. Meanwhile, efforts are needed to improve supervision and control on the whole process of projects to ensure quality and ecological environment protection.

Third, the exemplary role played by private enterprises needs to be given full play.

In recent years, China's rising influence in the Pacific Island nations has attracted the attention of major countries like Australia, New Zealand and the US, which have increased diplomatic activities and even military presence in the region to check China.

They have hyped the "China threat" theory and announced that China's assistance will increase the debt burden of Pacific Island nations so as to undermine cooperation between China and the countries. Against such a complicated international situation, China needs to improve policy support for private enterprises on capital, information, technologies and talents, improve cooperation with the Pacific island countries in key areas such as industrial cultivation and energy security, and allow private enterprises to play a greater role.

The author is deputy director of Sustainable Development and Marine Economy Department at China Development Institute.

The author contributed this article to China Watch exclusively. The views expressed do not necessarily reflect those of China Watch.

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