• Trade and Investment

    Trade and Investment relations between the two countries have grown significantly and continue to grow. The two countries concluded a formal MOU on Trade and Economic Cooperation in 1990 and a Framework Agreement on Trade in July 1996. These agreements provides for the two countries to explore ways to increase and expand trade. PNG is China’s largest trading partner in the South Pacific, whilst China is PNG’s sixth trading partner.
    Bilateral trade between the two countries has grown to US$1.3 billion since 2012 and China’s total investment in the country amounts to more than US$2 billion last year (2013).


    Trade between Papua New Guinea and the People’s Republic of China

    Trade and Investment

    Source: Department of Trade, Commerce and Industry, October 2013

     

    Note:


    • Since 2008, trade has been in favour of China with PNG’s Balance of Trade recording a deficit for the last five years.

    • The total trade volume between the two countries stands at US$1.3 billion since 2012. This was a drop from the total trade volume of US$2 billion enjoyed in 2009. This is explained due to PNG’s heavy reliance on manufactured products from China and the China’s currency having a strong economic performance against the US dollar since 2010.

     

    Investment Cooperation

     

    PNG will continue to be China’s biggest investment destination in the South Pacific region. Chinese investment in PNG has rapidly expanded and its flagship project, the Ramu Nickel Cobalt mine owned by the China Metallurgic Construction Company (CMCC), has already seen the cooperation worth US$1.5bn in value. The mine in Madang is producing in maximum capacity since mid last year.
    There several other large investment projects operated by various Chinese State-Owned Enterprises (SOEs) including China Harbour Engineering (CHE), China New Building Materials Company (CNBM), Huaweii Technologies, China Railway Construction and Engineering Cooperation, SINOPEC, China New Building Materials (CNBM) Company, Huawei Technologies and others.