On Monday the Australian prime minister dismissed while “speculative” reports that a Chinese company plans to build a new industrial city near Australia’s sea boarder with Papua New Guinea.
The WYW Holding Ltd. That is registered in Hong Kong, is planning to build a $30 billion city that will include both seaport and an industrial area. The city is to be built on the Daru Island area in the Torres Strait according to the Australian media.
The population of Daru Island is 20,000 people within 5km (3miles) of Saibai Island and about 200km (120 miles) from the Australian mainland.
Scott Morrison the prime minister has played down the prospect.
When he spoke to Sydney Radio 2SM, he gave the following statement:
“I honestly think it’s just speculative. It’s just people flying some kites and I’m not going to overreact to the noise that is flying around out there. I speak pretty regularly with the Prime Minister of Papua New Guinea (James Marape) and we have a very good relationship and he well understands our relationship and the importance of our other partners and I couldn’t see Papua New Guinea being terribly hasty on anything like that,”
According to analysts, the proposal makes no economic sense and some even suspect that China wants to build a wharf for the navy.
Australia and the US are partnering in order to develop the Papua New Guinea’s Lombrum Naval Base on Manus Island as china is growing influence in the region.
By the end of last year, the Papua New Guinea signed understanding memorandum with Fujian Zhonghong Fishery Company, a Chinese firm in order to build a $160 million fish processing plant.
Peter Dutton, the Home Affairs Minister has said that the government was keen to discuss the proposals of Papua New Guinea.
“I think there are all sorts of sovereignty issues and there are local issues in terms of land owners and land rights, et cetera that I think would provide a significant hurdle. So, we’ll look at it closely, but Australia will always act in our best interests and … to support our neighbors,” he told Nine Network television on Friday.