Reported 12 months ago
China donated $21 million to help Vanuatu build a grand presidential palace and government buildings, causing concerns among Western nations about China's expanding influence in the South Pacific. Vanuatu, with a population of less than 300,000, has 40% of its external debt owed to China, raising fears of falling into a 'debt trap diplomacy'. The move involved a handover ceremony between the Chinese embassy and Vanuatu's Prime Minister at the newly constructed buildings, which will house government departments and hundreds of officials. This significant assistance from China, in addition to previous aid for infrastructure improvements, has prompted international vigilance. Vanuatu, consisting of 83 islands in the South Pacific, has maintained formal diplomatic relations with China since its independence in 1980, except for a brief shift in 2004 which lasted only 7 days before reverting due to a change in foreign ministers.
Source: YAHOO