Australian Government Pays Chinese Company Millions for Nauru Port Despite Controversies

The Australian government has paid millions of dollars to a Chinese company, Beijing-backed Poly Group, to construct a new port in Nauru, despite controversies surrounding the company. Poly Group has a patchy track record, including allegations of bribery, but is still being awarded a major project in the Pacific region, which is a focus of the competition for influence between China and the West.

The port project in Nauru is seen as part of China's efforts to expand its presence and influence in the Pacific, a region of strategic importance. The Chinese Communist Party's news organ reported on the deal in January, amid intensifying regional competition between China and Western powers like Australia.

Adding to the concerns, the company awarded the contract, Zhao Fugang's syndicate, is suspected of infiltrating an elite Fijian police taskforce that was meant to be fighting drug trafficking and organized crime in the Pacific region. Australian security officials believe that members of the taskforce have been working for the Zhao syndicate, which has a network of criminals and facilitators spanning the South Pacific.

The revelation has placed further pressure on the Fijian government, which was already responding to reports of Zhao's designation as an Australian Priority Organisation Target. The Albanese government is poised to announce a major increase in security aid across the South Pacific, but is concerned that it may be complicated by the corruption allegations.

Why this matters: The awarding of a major infrastructure project to a controversial Chinese company highlights the complex geopolitical dynamics and competition for influence in the strategically important Pacific region. It also raises questions about Australia's approach to countering China's growing presence and the challenges posed by corruption and organized crime in the region.

The Australian government has not publicly commented on the specific allegations surrounding the Nauru port project and the companies involved. However, officials have emphasized Australia's commitment to supporting infrastructure development and security in the Pacific region, while also navigating the complexities of the geopolitical landscape and the need to address issues of corruption and transnational crime.

Key Takeaways

• Australia paid millions to Chinese firm Poly Group to build Nauru port despite controversies.
• Poly Group has a patchy track record, including allegations of bribery, but still awarded contract.
• Syndicate awarded the contract is suspected of infiltrating an elite Fijian police taskforce.
• Awarding project to controversial Chinese firm highlights geopolitical competition in the Pacific region.
• Australia's approach to countering China's presence and addressing corruption in the region is challenged.