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20 June 2018

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I wrote about Chinese soft power and influence a few years ago. Now we are beginning to see tangible changes in the Pacific and the reconfiguration of power.

Interesting times ahead.

For a small developing country like PNG these huge Chinese loans could become a problem.
The country has not yet reached the stage where village people are able to mortgage their village land for a loan to start up an SME.
Yet here is China lending money to PNG for loans that it may not be able to repay. The concept that they will have to offer some "land" to repay the loan will probably be something they will not accept. What happens then?

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