Proposal to Build Chinese City Near Tip of Australia ‘Speculation’: Aussie PM

Papua New Guinea Prime Minister Peter O'Neill, back left, attends a signing ceremony with Chinese Premier Li Keqiang, back right at the Diaoyutai State Guesthouse in Beijing, China on April 26, 2019. (Kyodo News/Parker Song, Pool).

CANBERRA, Australia — Prime Minister Scott Morrison has dismissed concerns over Beijing’s interest in building a $39 billion (US$29.4 billion) city just 200 kilometres (124 miles) from the tip of Australia.

The proposed site is an island named Daru in the southwest of Papua New Guinea (PNG), which lies to the north of Australia.