THE volume of trade between Papua New Guinea and China has surpassed the US$500 million mark during the first 10 months of last year, pointing to firming economic ties between the two countries.
Available statistics indicated that trade exchange could exceed US$600 million by the end of 2007.
From January to October last year, the trade volume was recorded at US$585 million, up 17%, from the same period in 2006.
Chinese Ambassador to Papua New Guinea Wei Ruixing said he was yet to receive official figures for November and December but was confident that total volume of trade last year was sure to surpass US$600 million.
Noting the high level of trade exchange, Mr Wei described this exciting development as “robust”.
This was the highest since the creation of bilateral trade relations in 1976 between China and PNG.
Recently, there had been more frequent exchange of high level visits between the two countries.
From a total volume of trade of only US$140 million in 2001, this tripled to US$518 million in 2006, increasing last year to over US$600 million with signs that this could further increase this year.
PNG is the largest Pacific trading partner of China, which is its second largest donor source country, second only to Australia.
“There will be more Chinese companies investing in PNG in a whole lot of sectors including the fisheries sector,” Mr Wei said.
Referring to data from the Investment Promotion Authority (IPA), Mr Wei said between 1993 and 2006, China invested a total of US$910 million. In 2006 alone, investment amounted to US$310 million.
Last year, the Chinese government awarded 24 scholarships for PNG students, helped train more than 80 Government personnel and donated medicines.
The Chinese government gave K200,000 that complemented a K30,000 share from the Chinese Red Cross Society and donated this to fund aid efforts in areas devastated by Cyclone Guba.
“It is very important for us developing countries to help each other as we pursue common interests for mutual benefit,” Mr Wei said.
Looking ahead, he said: “There is great potential in trade, economic cooperation, health, education, agriculture and other fields”.
Minister for National Planning and District Development Paul Tiensten said: “Ultimately, what we want to see in the end is broad-based economic growth, as stressed in the medium-term development strategy (MTDS), where many of our primary producers and grassroots people would be involved in economic investments that will improve the quality of life in mutual benefit.”
Some of the projects undertaken by the Chinese government include Kandep agricultural research project, Papa Lealea road construction project, Unitech computer and mathematics building project, and the recent fish processing facility at Lae, among others.