Vanuatu And China Foster Closer Relations

by Mary Swire, Tax-News.com, Hong Kong

12 July 2007

Vanuatu President, Kalkot Mataskelekele commenced a six-day visit to China earlier this week in the hope of securing extra investment in the Vanuatuan economy by Chinese investors.

In his meeting with Mataskelekele, Wu Bangguo, chairman of the Standing Committee of the National People's Congress (NPC), China's highest legislative organ, said on Tuesday afternoon that: "China would like to work with Vanuatu to increase high-level visits, expand the scope of cooperation and achieve more substantial results."

Mataskelekele is hoping that Chinese businesses will increase investment in Vanuatu's agriculture, forestry, fisheries, telecommunications and infrastructure.

Mataskelekele went on to observe that China has generously supported Vanuatu on the issue of national independence, and on economic construction, and he assured Beijing that Vanuatu will adhere to the 'one-China' policy and support China's reunification cause.

Vanuatu's relations with China came under scrutiny in 2004 when then Prime Minister, Serge Vohor went behind his own government's back and declared the Pacific jurisdiction's allegiance to Taiwan, in defiance of Vanuatu's long-standing support for the one-China policy. The move was apparently motivated by Vohor's desire for a fresh source of funds to help Vanuatu's development, but he was eventually ousted from office, and normal relations with China were resumed later in the year.

Since the ending of the civil war in 1949, Beijing’s insistence that Taiwan remains a part of greater China, and therefore has no right to establish foreign relations, has left the island very isolated diplomatically. Whilst many countries have established informal relations with Taiwan, few have established full diplomatic ties for fear of incurring the wrath of China.

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