Explained: Why has a Chinese company leased a whole island in the Pacific? | Explained News, The Indian Express

Explained: Why has a Chinese company leased a whole island in the Pacific? | Explained News, The Indian Express

Written by Om Marathe |New Delhi |Updated: October 19, 2019 5:30:04 pm

Explained: Why has a Chinese company leased a whole island in the Pacific?

The move by China is considered to be in furtherance of its aggressive foreign policy, which seeks to make Beijing a major sea power in the Pacific Ocean, where Tulagi is located.

The island is considered important for its natural deepwater harbour. Because of this advantage, Tulagi during World War II served as the Pacific headquarters for the Allied forces. (YouTube video grab)

On Wednesday, the New York Times reported that a Chinese company with close ties to the Chinese Communist Party has secured exclusive development rights for the entire island of Tulagi, giving it the right to develop major infrastructure projects, and even possibly use the island for building strategic assets.