Posted on August 3, 2022
A Chinese state-owned company is negotiating to buy a forestry planation with a deep-water port and World War II airstrip in Solomon Islands amid persistent concerns that China wants to establish a naval foothold in the South Pacific country.
A delegation from China Forestry Group Corp. visited the plantation that covers most of Kolombangar Island in 2019, asking questions about the length of the wharf and depth of the water while showing little interest in the trees, Australian Broadcasting Corp. reported on Monday.
The board of Kolombangara Forest Products Ltd., the takeover target known as KFPL which is owned by Taiwanese and Australian shareholders, wrote to the newly elected Australian government in May warning of the “risks/strategic threats” posed to Australia by such a sale, the ABC reported.
Australia’s Department of Foreign Affairs and Trade wrote back to the board last week saying it was “not intervening,” the ABC said.