China’s Belt and Road Initiative (BRI) is an infrastructure project launched in 2013 by President Xi Jinping. BRI was inspired by the ancient Silk Road, established during the Han Dynasty 2000 years ago. It aims to connect Asia with Africa and Europe through land and maritime trade networks, enhancing regional cooperation and increasing trade and economic growth. Besides, the BRI has extended its reach into the Pacific Islands, which are increasingly becoming regions of geopolitical importance. Taking the example of Solomon Islands, we analyze how China’s influence shapes the dynamics of Small Island Developing States (SIDS). The strategic location and economic vulnerabilities of the Solomon Islands have made it a partner in the BRI strategy. It also evaluates potential risks, financial dependence, and environmental concerns and further understands the effects of BRI on the SIDS and its role in the evolving Indo-Pacific order.
Solomon Islands, an archipelago in the South Pacific, accommodates 829,192 people who are heavily dependent on agriculture, fishing, and forestry with limited industrial development. Nevertheless, the country faces economic and political instability and is vulnerable to climate change. Hence, as one of the SIDS, it is highly dependent on foreign aid and investment.
With almost 146 to 151 countries involved, BRI aims to develop infrastructure, build ports to foster energy and digital projects, and advance technology. For China, the BRI strategy helps increase its geopolitical influence and promotes economic partnerships globally. China offers the SIDS the developmental opportunities necessary for economic growth while raising concerns about these countries’ economic dependency. Initially, the Solomon Islands established diplomatic ties with the Republic of China (Taiwan) for almost 36 years and shifted its ties with the People’s Republic of China in September 2019, aligning with China’s “One-China Policy.”. The “One-China Policy” recognizes only the People’s Republic of China as the legitimate government, rejecting Taiwan’s status as an independent state. There has been a strong bilateral tie between the countries wherein China engages in developmental assistance, investments in trade, infrastructure, and security, adhering to the BRI framework. The Guadalcanal Road corridor is a Chinese-funded infrastructure project that aims to improve connectivity on the island. Though it aligns with the BRI strategy, it is not officially a part of BRI. A security agreement was signed in 2022, increasing Chinese influence in the region. This pact allowed the Chinese military and armed forces to be deployed on Solomon Islands. However, this agreement has increased the competition, prompting the United States and its allies to enhance their involvement in the Pacific Islands.
The BRI strategy has brought immense economic transformations in the region through large-scale infrastructure projects. These projects include the construction of roads or sports facilities like the 2023 Pacific Games in Honiara City, the capital of Solomon Islands. Though these developments foster economic growth, they also raise concerns about the long-term financial sustainability of these facilities. Moreover, these investments might leave a risk of “debt-trap diplomacy,” where Solomon Islands could face challenges in repayments, thereby compromising its sovereignty over its resources or assets.
Trade relations have become strengthened between the Solomon Islands and China, where timber and other natural resources are exported to China by the Solomon Islands. The majority of the wood exports made by Solomon Islands are bought by China, showing a relatively strong dependence on Chinese markets. However, this export of raw materials exposes the Solomon Islands to market fluctuations. The involvement of BRI has had a significant impact on growth but also has some risks, including over-dependence on China.
The proximity to key maritime routes and alignment to the BRI strategy have made the Solomon Islands a strategic focal point within the Pacific region. This offers a strategic advantage for China, enabling Beijing to strengthen its influence in the region, which the United States and its allies initially influenced. Moreover, the Security Pact 2022 further raised concerns over establishing Chinese bases in the area. The power dynamics have been shifted, urging the United States, Australia, and New Zealand to increase their presence in the Pacific region to counter China’s growing influence.
The Chinese-funded developmental projects and large-scale construction activities in the Solomon Islands have left significant repercussions such as environmental degradation, soil erosion, deforestation, degradation of marine ecosystems, and becoming a threat to the islands’ biodiversity and ecological balance.
Some Chinese-funded BRI projects include a multi-dollar contract awarded to a Chinese state company to redevelop the Honiara International Port. This improved the port’s capacity, facilitating increased trade and economic activity. Nevertheless, this has caused geopolitical concerns among the neighboring countries. The United States and its allies, including Australia, New Zealand, and Japan, have raised concerns regarding Chinese ambitions to build its naval base because of the Security Pact of 2022. Additionally, the Gold Ridge Mine was restored after being inactive for years by Chinese investment. The project aims to create job opportunities and increase export revenues. The major drawback of this project is its outcome of environmental degradation, water pollution, and disputes over land rights with the local communities. Further concerns were raised about fair and equitable distribution of benefits between investors and landowners.
Other SIDS, like Fiji, face similar circumstances while collaborating with China’s BRI strategy. Even though they benefit from the development with the help of BRI, concerns have been raised about debt sustainability, environmental impacts, and increasing financial obligations to China. The comparison of Solomon Island with other SIDS provides an understanding of the dynamics of BRI in the Pacific region. Notable projects in the Fiji Islands include the construction of the Stinson Parade and the Vatuwaqa Bridges, which have helped them improve their transportation facilities, making them a hub for trade and tourism in the Pacific region.
The Solomon Islands face the issue of the economic burden of increasing debt to China due to the large-scale infrastructure projects funded through the framework of BRI. Critics have pointed out that if the debt is not appropriately managed, there would be an increased risk of economic instability and also the risk of overdependence on China for finance. The secrecy of signing the agreements between China and the Solomon Islands has raised questions about transparency, making it a concern among the local population. The media has faced challenges relating to the BRI projects. They constantly face restrictions in an attempt to ask Chinese officials questions regarding the BRI projects. Mostly, the questions would be limited to two, or reporters would be restricted from filming events. These constraints could be seen during the visit of the Chinese foreign minister Wang Yi. Further, this led to the Media Association of Solomon Island (MASI) boycott of events. The government had also directed the Solomon Islands Broadcasting Corporation (SIBC) to submit the news content before airing it. Hence, concerns about press freedom and transparency in the Solomon Islands and in broader Pacific regions have been raised.
Chinese investment has brought about significant progress in infrastructure development as well as the economy of the Solomon Islands. Most of the population views these developments as a hope for improvement but, on the other hand, fears losing their resources. These islands are in a “tug of war” between China and traditional allies like the United States. Maintaining transparency and sustainability for its citizens is crucial for the island’s success and progress.