NZ Herald
  • Home
  • Latest news
  • Herald NOW
  • Video
  • New Zealand
  • Sport
  • World
  • Business
  • Entertainment
  • Podcasts
  • Quizzes
  • Opinion
  • Lifestyle
  • Travel
  • Viva
  • Weather

Subscriptions

  • Herald Premium
  • Viva Premium
  • The Listener
  • BusinessDesk

Sections

  • Latest news
  • New Zealand
    • All New Zealand
    • Crime
    • Politics
    • Education
    • Open Justice
    • Scam Update
  • Herald NOW
  • On The Up
  • World
    • All World
    • Australia
    • Asia
    • UK
    • United States
    • Middle East
    • Europe
    • Pacific
  • Business
    • All Business
    • MarketsSharesCurrencyCommoditiesStock TakesCrypto
    • Markets with Madison
    • Media Insider
    • Business analysis
    • Personal financeKiwiSaverInterest ratesTaxInvestment
    • EconomyInflationGDPOfficial cash rateEmployment
    • Small business
    • Business reportsMood of the BoardroomProject AucklandSustainable business and financeCapital markets reportAgribusiness reportInfrastructure reportDynamic business
    • Deloitte Top 200 Awards
    • CompaniesAged CareAgribusinessAirlinesBanking and financeConstructionEnergyFreight and logisticsHealthcareManufacturingMedia and MarketingRetailTelecommunicationsTourism
  • Opinion
    • All Opinion
    • Analysis
    • Editorials
    • Business analysis
    • Premium opinion
    • Letters to the editor
  • Politics
  • Sport
    • All Sport
    • OlympicsParalympics
    • RugbySuper RugbyNPCAll BlacksBlack FernsRugby sevensSchool rugby
    • CricketBlack CapsWhite Ferns
    • Racing
    • NetballSilver Ferns
    • LeagueWarriorsNRL
    • FootballWellington PhoenixAuckland FCAll WhitesFootball FernsEnglish Premier League
    • GolfNZ Open
    • MotorsportFormula 1
    • Boxing
    • UFC
    • BasketballNBABreakersTall BlacksTall Ferns
    • Tennis
    • Cycling
    • Athletics
    • SailingAmerica's CupSailGP
    • Rowing
  • Lifestyle
    • All Lifestyle
    • Viva - Food, fashion & beauty
    • Society Insider
    • Royals
    • Sex & relationships
    • Food & drinkRecipesRecipe collectionsRestaurant reviewsRestaurant bookings
    • Health & wellbeing
    • Fashion & beauty
    • Pets & animals
    • The Selection - Shop the trendsShop fashionShop beautyShop entertainmentShop giftsShop home & living
    • Milford's Investing Place
  • Entertainment
    • All Entertainment
    • TV
    • MoviesMovie reviews
    • MusicMusic reviews
    • BooksBook reviews
    • Culture
    • ReviewsBook reviewsMovie reviewsMusic reviewsRestaurant reviews
  • Travel
    • All Travel
    • News
    • New ZealandNorthlandAucklandWellingtonCanterburyOtago / QueenstownNelson-TasmanBest NZ beaches
    • International travelAustraliaPacific IslandsEuropeUKUSAAfricaAsia
    • Rail holidays
    • Cruise holidays
    • Ski holidays
    • Luxury travel
    • Adventure travel
  • Kāhu Māori news
  • Environment
    • All Environment
    • Our Green Future
  • Talanoa Pacific news
  • Property
    • All Property
    • Property Insider
    • Interest rates tracker
    • Residential property listings
    • Commercial property listings
  • Health
  • Technology
    • All Technology
    • AI
    • Social media
  • Rural
    • All Rural
    • Dairy farming
    • Sheep & beef farming
    • Horticulture
    • Animal health
    • Rural business
    • Rural life
    • Rural technology
    • Opinion
    • Audio & podcasts
  • Weather forecasts
    • All Weather forecasts
    • Kaitaia
    • Whangārei
    • Dargaville
    • Auckland
    • Thames
    • Tauranga
    • Hamilton
    • Whakatāne
    • Rotorua
    • Tokoroa
    • Te Kuiti
    • Taumaranui
    • Taupō
    • Gisborne
    • New Plymouth
    • Napier
    • Hastings
    • Dannevirke
    • Whanganui
    • Palmerston North
    • Levin
    • Paraparaumu
    • Masterton
    • Wellington
    • Motueka
    • Nelson
    • Blenheim
    • Westport
    • Reefton
    • Kaikōura
    • Greymouth
    • Hokitika
    • Christchurch
    • Ashburton
    • Timaru
    • Wānaka
    • Oamaru
    • Queenstown
    • Dunedin
    • Gore
    • Invercargill
  • Meet the journalists
  • Promotions & competitions
  • OneRoof property listings
  • Driven car news

Puzzles & Quizzes

  • Puzzles
    • All Puzzles
    • Sudoku
    • Code Cracker
    • Crosswords
    • Cryptic crossword
    • Wordsearch
  • Quizzes
    • All Quizzes
    • Morning quiz
    • Afternoon quiz
    • Sports quiz

Regions

  • Northland
    • All Northland
    • Far North
    • Kaitaia
    • Kerikeri
    • Kaikohe
    • Bay of Islands
    • Whangarei
    • Dargaville
    • Kaipara
    • Mangawhai
  • Auckland
  • Waikato
    • All Waikato
    • Hamilton
    • Coromandel & Hauraki
    • Matamata & Piako
    • Cambridge
    • Te Awamutu
    • Tokoroa & South Waikato
    • Taupō & Tūrangi
  • Bay of Plenty
    • All Bay of Plenty
    • Katikati
    • Tauranga
    • Mount Maunganui
    • Pāpāmoa
    • Te Puke
    • Whakatāne
  • Rotorua
  • Hawke's Bay
    • All Hawke's Bay
    • Napier
    • Hastings
    • Havelock North
    • Central Hawke's Bay
    • Wairoa
  • Taranaki
    • All Taranaki
    • Stratford
    • New Plymouth
    • Hāwera
  • Manawatū - Whanganui
    • All Manawatū - Whanganui
    • Whanganui
    • Palmerston North
    • Manawatū
    • Tararua
    • Horowhenua
  • Wellington
    • All Wellington
    • Kapiti
    • Wairarapa
    • Upper Hutt
    • Lower Hutt
  • Nelson & Tasman
    • All Nelson & Tasman
    • Motueka
    • Nelson
    • Tasman
  • Marlborough
  • West Coast
  • Canterbury
    • All Canterbury
    • Kaikōura
    • Christchurch
    • Ashburton
    • Timaru
  • Otago
    • All Otago
    • Oamaru
    • Dunedin
    • Balclutha
    • Alexandra
    • Queenstown
    • Wanaka
  • Southland
    • All Southland
    • Invercargill
    • Gore
    • Stewart Island
  • Gisborne

Media

  • Video
    • All Video
    • NZ news video
    • Herald NOW
    • Business news video
    • Politics news video
    • Sport video
    • World news video
    • Lifestyle video
    • Entertainment video
    • Travel video
    • Markets with Madison
    • Kea Kids news
  • Podcasts
    • All Podcasts
    • The Front Page
    • On the Tiles
    • Ask me Anything
    • The Little Things
  • Cartoons
  • Photo galleries
  • Today's Paper - E-editions
  • Photo sales
  • Classifieds

NZME Network

  • Advertise with NZME
  • OneRoof
  • Driven Car Guide
  • BusinessDesk
  • Newstalk ZB
  • Sunlive
  • ZM
  • The Hits
  • Coast
  • Radio Hauraki
  • The Alternative Commentary Collective
  • Gold
  • Flava
  • iHeart Radio
  • Hokonui
  • Radio Wanaka
  • iHeartCountry New Zealand
  • Restaurant Hub
  • NZME Events

SubscribeSign In
Advertisement
Advertise with NZME.
Home / World

China's largesse in Tonga threatens future of Pacific nation

By Nick Perry
Other·
10 Jul, 2019 08:44 PM5 mins to read

Subscribe to listen

Access to Herald Premium articles require a Premium subscription. Subscribe now to listen.
Already a subscriber?  Sign in here

Listening to articles is free for open-access content—explore other articles or learn more about text-to-speech.
‌
Save

    Share this article

Chinese President Xi Jinping meets Tonga's King Tupou VI in Beijing. Video / CGTN

The days unfold at a leisurely pace in Tonga, a South Pacific archipelago with no traffic lights or fast-food chains, and where snuffling pigs roam dusty roads.

Yet even in this far-flung island kingdom, there are signs a battle for power and influence is heating up among much larger nations — and Tonga may end up paying the price.

Government officials work in a shiny new office block that was a US$11 million gift from China. Dozens of bureaucrats take all-expenses-paid training trips to Beijing each year. And China has laid out millions of dollars to bring Tongan athletes and coaches to a training camp in China's Sichuan province.

A Chinese flag flies outside the Chinese Embassy in Nuku'alofa, Tonga. China's presence is being felt in the small South Pacific nation. Photo / AP
A Chinese flag flies outside the Chinese Embassy in Nuku'alofa, Tonga. China's presence is being felt in the small South Pacific nation. Photo / AP

"The best facilities. The gym, the track, and a lot of equipment we don't have here in Tonga," said Tevita Fauonuku, the country's head athletic coach. "The accommodation: lovely, beautiful. And the meals. Not only that, but China gave each and everyone some money. A per diem."

Advertisement
Advertise with NZME.
Advertisement
Advertise with NZME.

China also offered low-interest loans after pro-democracy rioters destroyed much of downtown Nuku'alofa in 2006, and analysts say those loans could prove Tonga's undoing. The country of 106,000 people owes about US$108 million to China's Export-Import bank, equivalent to about 25 percent of GDP.

Teisina Fuko, a 69-year-old former parliament member, suspects China finds his country's location useful.

Fisherman and former politician Teisina Fuko speaks on his fishing boat in Nuku'alofa, Tonga. Fuko worries about how Tonga will pay back loans from China. Photo / AP
Fisherman and former politician Teisina Fuko speaks on his fishing boat in Nuku'alofa, Tonga. Fuko worries about how Tonga will pay back loans from China. Photo / AP

"I think Tonga is maybe a window to the Western side," he said. "Because it's easy to get here and look into New Zealand, Australia."

"It's a steppingstone."

Advertisement
Advertise with NZME.

For decades, the South Pacific was considered the somewhat sleepy, backyard of Australia, New Zealand and the United States. Now, as China exerts increasing influence, Western allies are responding.

After Cyclone Gita destroyed Tonga's historic Parliament House last year, the government first suggested China might like to pay to rebuild it. Then Australia and New Zealand stepped in and are now considering jointly funding the project.

A security guard walks amongst the ruins of the Tonga's historic Parliament House destroyed last year in Cyclone Gita. Australia and New Zealand are looking at how to fund its rebuild. Photo / AP
A security guard walks amongst the ruins of the Tonga's historic Parliament House destroyed last year in Cyclone Gita. Australia and New Zealand are looking at how to fund its rebuild. Photo / AP

Experts say the South Pacific could be important to China's navy or coveted for its fisheries, seabed minerals and natural resources. China is also engaged in an ongoing effort to lure away the few remaining countries that recognise Taiwan instead of China — several of them Pacific island nations.

"It's not entirely clear what China wants in the South Pacific," said professor Rory Medcalf, the head of the National Security College at Australian National University. "It's just clear that China is becoming very active and making its presence felt."

China has poured about US$1.5 billion in aid and low-interest loans into the South Pacific since 2011, putting it behind only Australia, according to an analysis by Australian think-tank the Lowy Institute. And that figure rises to over US$6 billion when future commitments are considered.

A development site for a Chinese Investment bank in Nuku'alofa, Tonga. Photo / AP
A development site for a Chinese Investment bank in Nuku'alofa, Tonga. Photo / AP

Some worry the loans could become debt traps when nations can't repay.

China's ambassador to Tonga, Wang Baodong, said China has only benevolent intentions in Tonga and no hidden agenda. "Some people in the West are being over-sensitive and too suspicious," he said. "No need."

It's not just money that is flowing in from China. Chinese immigrants began arriving in the 1990s when Tonga started selling passports.

The idea was to attract wealthy Hong Kong residents hedging their bets ahead of the former British colony's return to China in 1997. Instead, they were snapped up by rural Chinese looking for a better life.

In a country with few jobs, Tongans worry that Chinese immigrants are now running most of the corner groceries and are expanding their business interests into farming and construction.

Advertisement
Advertise with NZME.
A shopkeeper waits for business in Nuku'alofa, Tonga. Tonga's leaders have called on their countrymen to learn from Chinese immigrants hard-work ethic. Photo / AP
A shopkeeper waits for business in Nuku'alofa, Tonga. Tonga's leaders have called on their countrymen to learn from Chinese immigrants hard-work ethic. Photo / AP

Wang acknowledges the criticism that Chinese immigrants run many businesses but said Tonga's leaders recognise the contribution they make and have even called on Tongans to learn from their hard-work ethic.

The real threat to Tonga's future may lie in its crippling loans from China. Repayments were due to start last year, and panic crept in.

Last August, Prime Minister 'Akilisi Pohiva called on other Pacific nations to join forces to demand debt relief, warning that China could snatch away buildings and other assets. But he reversed his position days later, saying Tonga was "exceedingly grateful" for China's help.

Within months Tonga announced it had been given a reprieve and didn't need to start repayments for another five years.

Tonga also said it was joining China's Belt and Road Initiative, the trillion-dollar investment-and-lending program that is a signature policy of President Xi Jinping.

A man prepares to drive his car in Nuku'alofa, Tonga. Repayments of the country's loans from China were due to start last year. Photo / AP
A man prepares to drive his car in Nuku'alofa, Tonga. Repayments of the country's loans from China were due to start last year. Photo / AP

Tongan officials don't seem eager to discuss the relationship with China, saying all questions about China's loans and aid should be directed to Chinese officials.

Advertisement
Advertise with NZME.

Wang said there was no link between Tonga getting a break on its loans and joining the Belt and Road Initiative. He said Tonga had raised concerns about the loan, and China was willing to help.

Fuko thinks the loans have given China the upper hand with Tonga.

"I don't know how we are going to pay that back," the former lawmaker said.

An unintended consequence of Tonga's China loans could be a reduction in foreign investment and a withering of the revenues needed to pay them back.

Critics point to the Foreign Exchange Control Act Tonga introduced last year, designed to keep money in the country and protect its currency during financial emergencies.
Tongan-based lawyer Ralph Stephenson said that while the law isn't being enforced, it's still spooking investors.

A Chinese Embassy staff member gestures to stop taking photos outside the embassy accommodation building in Nuku'alofa, Tonga. Photo / AP
A Chinese Embassy staff member gestures to stop taking photos outside the embassy accommodation building in Nuku'alofa, Tonga. Photo / AP

"The penalties for breaching the act are Draconian," he said.

Advertisement
Advertise with NZME.

Wang said any notion that China might be engaged in a Pacific power struggle with the West or was using Tonga to keep tabs or even spy on New Zealand and Australia is nonsense.

"Tonga is a small country. It's almost impossible to hide any secret," Wang said. "For some of our Western friends, personally, I think they should be confident in their relations and influence in this region."

For Ola Koloi, who runs a tourist lodge, China's footprint is too pervasive, influencing what she can buy since so many goods for sale come from China.

She said the loans to China should worry every Tongan.

"I feel like I'll be Chinese soon," she said.

- AP

Advertisement
Advertise with NZME.
Save

    Share this article

Latest from World

World

'Terrible lie': Defence counters claims in mushroom murder trial

18 Jun 08:02 AM
World

Three Australians facing death penalty in Bali murder case

18 Jun 07:16 AM
World

Death toll from major Russian strike on Kyiv rises to 21, more than 130 injured

18 Jun 06:15 AM

Jono and Ben brew up a tea-fuelled adventure in Sri Lanka

sponsored
Advertisement
Advertise with NZME.

Latest from World

'Terrible lie': Defence counters claims in mushroom murder trial

'Terrible lie': Defence counters claims in mushroom murder trial

18 Jun 08:02 AM

Barrister says prosecutors focused on messages to undermine Erin Patterson's family ties.

Three Australians facing death penalty in Bali murder case

Three Australians facing death penalty in Bali murder case

18 Jun 07:16 AM
Death toll from major Russian strike on Kyiv rises to 21, more than 130 injured

Death toll from major Russian strike on Kyiv rises to 21, more than 130 injured

18 Jun 06:15 AM
Milestone move: Taiwan's submarine programme advances amid challenges

Milestone move: Taiwan's submarine programme advances amid challenges

18 Jun 04:23 AM
Help for those helping hardest-hit
sponsored

Help for those helping hardest-hit

NZ Herald
  • About NZ Herald
  • Meet the journalists
  • Newsletters
  • Classifieds
  • Help & support
  • Contact us
  • House rules
  • Privacy Policy
  • Terms of use
  • Competition terms & conditions
  • Our use of AI
Subscriber Services
  • NZ Herald e-editions
  • Daily puzzles & quizzes
  • Manage your digital subscription
  • Manage your print subscription
  • Subscribe to the NZ Herald newspaper
  • Subscribe to Herald Premium
  • Gift a subscription
  • Subscriber FAQs
  • Subscription terms & conditions
  • Promotions and subscriber benefits
NZME Network
  • The New Zealand Herald
  • The Northland Age
  • The Northern Advocate
  • Waikato Herald
  • Bay of Plenty Times
  • Rotorua Daily Post
  • Hawke's Bay Today
  • Whanganui Chronicle
  • Viva
  • NZ Listener
  • Newstalk ZB
  • BusinessDesk
  • OneRoof
  • Driven Car Guide
  • iHeart Radio
  • Restaurant Hub
NZME
  • About NZME
  • NZME careers
  • Advertise with NZME
  • Digital self-service advertising
  • Book your classified ad
  • Photo sales
  • NZME Events
  • © Copyright 2025 NZME Publishing Limited
TOP